10 Financial Tips for Small Businesses. In the current economic climate, effective management of your company's finances is extremely important,
so we have the following tips at hand to help you with this:
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Keep records of all transactions
Always keep complete records of all your transactions. It is extremely important to have all your debit and credit transactions on record for reference,
whether it is for your annual tax assessment or audit, or just to prepare your own balance sheet.
Keep personal and business accounts separate
File your personal and business accounts separately. This will protect your business and eliminate confusion during the tax audit, as well as greatly facilitate financial management.
Protect your personal assets
Entrepreneurs often offer all their assets as collateral, with the resulting risk of losing everything if things don't work out.
Protect your personal assets by forming a legal business entity through which you are protected from liability, so that creditors cannot seize personal assets such as a house or car to pay off debts.
Know your financial position
Monitor your company's financial growth weekly. Make sure you know exactly how much money you have in the bank, how the sales are doing and how your inventory looks.
Regularly review your financial position in light of set goals as outlined in your business plan.10 Financial Tips for Small Businesses.
Plan your finances
You need to plan your finances very carefully to know exactly how much money you have to reach your goals. Make sure you have a good bookkeeper, in person or over the Internet.
Charge fees according to what you're worth
Charge fees according to what your product or service is worth; don't cut rates just to get more work.
Find a reliable bank as a business partner
If you don't have a lot of money, find a reliable bank that can give you good advice without charging exorbitant fees, and open a checking account for your business expenses.
Meet deadlines for taxes and other bills
Avoid hefty fines and extra costs from late tax returns and other payments by planning carefully. Get a good bookkeeper who can provide you with the right advice.
Save as much as possible
Save as much as you can every month, in a bank or in other ways. Try investing in assets that generate a return, e.g. property.
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Collect any outstanding debts
If anyone owes you money, collect it as soon as possible, otherwise your money is building someone else's company.
Send them bills and final reminders, but if that doesn't have the desired effect, get debt collectors to help you with that. 10 Financial Tips for Small Businesses.
This article is a general information piece and should not be used or relied upon as professional advice.
No liability can be accepted for any errors or omissions or for any loss or damage arising from reliance on any information contained herein.
Always contact your financial advisor for specific and detailed advice.