There are two things that are imperative in your business transactions when you own a business, the first is the number of customer transactions, but the second is how you actually handle your money. The common startup company may have a system in place, but it could consist of receipts on a spike or a “filing system” that looks like an atomic bomb went off in a filing cabinet! The importance of managing your finances in comparison to how much money is going out and coming in cannot be underestimated, so here are some things to think about before you spend another penny!
Budget Accordingly
As part of any business plan, the budget should be a firm fixture in your overall vision for the company. It is so important to start a budget plan, so you don’t go into the red or too far off track. Keep tabs on expenditure and allocate your funds to the spending accounts where necessary and keep an eye on how much you have saved. Operating without a steady budget can spell disaster further down the line. And make sure that you are keeping everything compartmentalized and filed away properly, which leads me onto…
Make The Filing System Your Priority
For companies that don’t have a suitable accounting system, it needs to be your priority. It will be the backbone of every transaction. You need to keep everything in one handy filing cabinet, and as there are many cloud-based accounting software packages available, it decreases a lot of worry about system malfunctions as the data is stored in the cloud. As well as the filing system, the transaction software you use could benefit from being upgraded to make processes easier. Using Stripe bank feed Xero integration software for easier transactions or payments via invoices reduces the amount of work you put into manually manipulating data making it an automatic process.
Save Money!
Does it need to be spelt out? Saving as much where you can prepares you for the inevitable financial peaks and troughs. Something as simple as buying a used car can save you a lot of money, and investing in pre-owned office furniture will help you to use your finances for the important things. Don’t underestimate the amount of funds you can get for starting your own company too! You can get government aid or a cash injection to get you off the ground.
Create Cash Flow Strategies
Business will forever be a fickle industry, which is why you need to prepare for fallow periods where there won’t be much coming in, which will be a big chunk of time at the start of the company. Different to saving money, creating a cash flow strategy will require as much pre-planning as keeping cash aside. But you may wish to create methods to get your customers to pay for their products early. Ideas can include a rewards-based incentive scheme or increasing the amount of services you provide to broaden your appeal within your customer base.