If you have recently formed your own business but find keeping on top of your finances arduous, take heart that you are far from alone. In a TD Bank survey cited by Salesforce's Desk.com blog, 46% of small business owners cited bookkeeping as the task they least liked.
This is seriously problematic, as money – and, thus, good management of that money – is clearly crucial to your company's success. Here are 4 pieces of advice that you can soak up to ensure that, however you fare in your own financial management efforts, you can get something of a head start. In the competitive corporate world, a head start is easy to appreciate.
Putting together a solid business plan
Planning ahead can serve you well in many areas of life – and running a start-up is no exception. Draw up a business plan and include various components to smooth your monetary planning. You could start with a market analysis and marketing plan for assisting you in more precisely estimating the revenue you can expect to bring in on a regular basis.
You could then add how you project your finances to pan out over the initial three to five years of your company's operations. Include income statements and balance sheets in an attempt to assess how much money you need for keeping things running and the amount of profit you should generate.
Increasing your revenue
With more money coming in, you will obviously have more room for manoeuvre with how you juggle your finances. The esteemed marketing guru Jay Abraham has cited three ways of growing a business: increasing the number of clients, increasing how much the business earns in an average transaction, and increasing the frequency with which the clients buy from the company.
Strategically automating and outsourcing
You should keep a watchful eye on your expenses to prevent them resulting in your outgoings outweighing your takings. Thankfully, you can trim those expenses by more extensively automating and outsourcing particular routines.
Automation is easier to achieve when, for instance, you arrange for your invoicing and debt-chasing systems to be computerised. Accountants at the London-based Akshar & Co can bring about this computerisation. Whether it is property management, GP or retail accountants in Harrow that you need, you can ask those at Akshar & Co to help you with your bookkeeping procedures.
Discerning between “fixed” and “variable” costs
It's crucial to judge in which areas you can cut costs without sacrificing the efficiency of your corporate operations. IntelligentHQ defines two distinct types of costs: fixed costs and variable costs. Fixed costs are those you can't change in any way; variable costs, however, give you more leeway for saving money.
Variable costs could be attached to accounting software that your company currently uses. There might be alternative software that is cheaper but still meets your needs; why not consider Intuit QuickBooks? It's possible to log into the Akshar & Co website to use QuickBooks Online, with which invoicing can be carried out more speedily.