You poured your heart and soul into starting your business, driven by a passion for what you do. But the reality of running a company involves more than just your craft; it demands a firm handle on the less glamorous side of things – the numbers. A healthy financial footing is what separates a business that thrives from one that just survives. It’s what gives you the confidence to expand and the security to handle unexpected bumps in the road. Fortunately, making a real improvement doesn’t require a radical change. Here are six straightforward ways you can get your finances into better shape, starting today.
Master Your Cash Flow
Do you have a crystal-clear picture of the money flowing in and out of your business each month? This is your cash flow, and it’s the absolute cornerstone of financial stability. When more money is coming in than going out, you can pay your bills without breaking a sweat. Get into the rhythm of checking your cash flow statement regularly. Weekly is great, daily is even better. This simple habit helps you catch cash-crunches before they happen, giving you a proper feel for the health of your business.
Draw a Line Between Personal and Business
It’s all too easy to pay for a business expense with a personal card, or vice versa. But this quickly creates a tangled mess that becomes a nightmare to sort out, particularly when the tax deadline looms. The solution is beautifully simple: open a separate bank account just for your business. Funnel all your business income into it and pay all your business expenses from it. It instantly tidies up your bookkeeping and makes you look far more professional.
Don’t Let Invoices Gather Dust
You’ve done the work, so you deserve to get paid on time. Yet, late payments can squeeze a small business’s cash flow like nothing else. It’s time to be proactive. Set up a system for chasing payments that is polite but firm. A gentle nudge before the due date, a reminder on the day, and consistent follow-ups afterwards will work wonders. Many modern accounting packages can even automate these reminders for you, taking one more job off your plate.
Give Your Outgoings a Spring Clean
When was the last time you properly scrutinised your business expenses? Set aside an hour to go through your statements line by line. Look for forgotten subscriptions, services you barely use, or suppliers where you could negotiate a better rate. Could you switch your energy provider or find a more competitive insurance quote? Every pound saved on non-essential spending is a pound you can reinvest into growing your business.
Let Technology Do the Heavy Lifting
If you’re still wrestling with spreadsheets for your accounts, you’re making life harder than it needs to be. A stray formula or a typo can throw everything off, not to mention the hours spent on manual data entry. Cloud-based accounting software is a game-changer. It automates invoicing, tracks expenses, and links directly to your business bank account. Suddenly, you have an accurate, up-to-the-minute view of your finances at your fingertips, wherever you are.
Work with a Proactive Accountant
Thinking an accountant is just for year-end tax returns is a common mistake. A good one is a strategic ally, someone who can offer expert advice on everything from tax efficiency to structuring your business for growth. They see the bigger picture. For instance, if you’re based in the South West, seeking out Bristol’s expert small business accountants could give you the specific insights you need. A dedicated team of small business accountants Bristol will do more than just crunch numbers; they’ll help you plan for the future. Having a skilled small business accountant Bristol in your corner is one of the smartest investments you can make.
By weaving these practices into the way you operate, you’ll create a stronger, more adaptable business.
