Of all the aspects of business ownership, for many, your business finances cause the most anxiety.
Your business finances can be challenging to manage, and if something goes wrong, the penalties can be daunting. Fortunately, much of the confusion around finances can be eradicated by following a handful of simple steps. Next time your business finances are giving you headaches, try these.
1. Don’t Panic, Organize
It’s easy to feel overwhelmed when your financial recordkeeping has gotten away from you. Receipts, bills, and statements all end up in a pile. It’s hard to figure out where you stand. The first step is to restore order. Because financial transactions are tracked chronologically by your bank, that’s the simplest order for you to use. Go through every record of money coming in and going out, and put them in order by date. You can also use an electric method, like ReceiptBank to organize your files. Enter them into your paper or electronic ledger. Then, store them for safekeeping. Once the paper trail has been filed, compare your paper records to your statements. If there are any discrepancies, you now know what they are and how big they are. Work with your bank to obtain copies of any missing pieces, and hold them to a high standard of customer service!
2. Make a Plan for your business finances
Once you know how much money came in and how you spent it, you can start working on a budget and a long-term plan. Use online templates and tools for this, or go the old-fashioned route with paper. What matters is that you have a clear idea of what your business needs. Put a reminder on your calendar to review your budget and your long-term financial plan every quarter, in case it needs tweaking.
3. Get Help if You Need it
Recognizing the limits of your expertise is not a failure. It’s sound business judgement. Look for a financial management adviser until you find one who understands your needs, treats you with respect, and is eager to empower you, not just to take your money. Connect with us. Reconciled can help you get a handle on your current position and support you in getting it to the next level.Nothing boosts confidence like competence. Once you get a handle on your business finances and the art of financial management, you will be able to set and achieve business goals like never before.