Managing your finances in a small business is key to ensuring you have adequate cash flow throughout the business and can afford to invest and pay yourself and your staff, says Samuel Nathan Kahn. The most important step for any business owner is to educate themselves and ensure you have the right support to stay on top of your expenses and cash flow.
Samuel Nathan Kahn shares his top tips for managing your finances in business:
Manage your accounting
In the beginning, it may seem like a cheaper and more viable option to manage your own business finances and accounting, and it will save you time and money in the short term. But one of the best investments you can make initially is ensuring your accounting and bookkeeping is set up properly as it will save you a lot of stress when it comes to the end of the financial year. It will also make it a lot easier for you when it comes to managing cash flow, expenses and financial goalsetting.
Review expenses regularly
Having your accounting set up properly from the beginning will also help you to see where your money is going and allow you to revise your spending habits regularly. By reviewing your expenses regularly you are also allowing your business additional opportunities for growth or investment in other areas, as existing expenses may not be relevant as you go along.
Invest in growth
It’s important to set aside money and look into growth opportunities. This sets your business up to thrive and move into a healthy financial direction. If your business values innovation and growth, then seeking out new training or opportunities for expansion is vital for you and your business.
Pay yourself
When running a small business, it can be easy to try and put everything that you earn into the day-to-day operations. But it is important to not overlook your own role in the company and ensure that you are being compensated accordingly. This is an important element to address with your accountant in your cash flow strategy.
Review financial goals
Ensure that you and your team are always working towards a goal or target. Be clear about what your short-term and long-term business visions are, and ensure you are checking in to see how you are tracking towards them every now and then. Re-examining where you are desiring to go also allows you to identify key priorities and obstacles that you may come up against.
Understand your cash flow cycles
By being on top of your businesses cash flow and ensuring you have a proper strategy implemented, you can measure the effectiveness of your management as well as the overall health of your business. Having a simple strategy allows you to know where your money is being spent and where you have extra capital to invest in while ensuring you’re staying on top of expenses.
For more business tips and advice, please visit Sam Kahn’s Website.