Starting and managing a business can be difficult and money concerns usually top the list of challenges. Here are some practical day-to-day tips you can use to manage your money more effectively.
- Don’t mix business and personal expenses.
Resist the urge to secure your business finances with personal funds when things get tight. It will only cause more confusion later on. The best way to maintain separation of your expenses is to set a personal budget and a business budget and stick to them strictly.
- Negotiate with vendors.
When making purchases from vendors or contracting with supplies, try to negotiate a better deal but always keep in mind of purchase terms like late payment fees and grace periods.
- Pay your bills on time.
It’s very important to pay your bills on time, every time. If you aren’t diligent with credit card and loan payments late fees can cost you. There are also serious penalties when paying your taxes if you are late.
- Spend some time on an accounting refresher.
Being a small business owner, you should know the basics of accounting, even if you hire a bookkeeper or accountant. It’s important to know how cash moves in and out of your business.
The better you understand your business finances and cash flow, the better prepared you will be to make smart money management decisions.