Budgets are essential to business success, so here’s how to control your company cashflow

If you want your business to find success in the long run, then proper financial management is absolutely essential. Paying attention to your legal responsibilities and cashflow allows you to stay on top of what’s coming in and what’s going out of your business, putting you in a better position for making a profit.

But managing your business finances can be challenging. It’s all too easy for costs and spending to slip through the cracks, but being diligent in keeping up with your finances will give your small business the best chance of surviving long term.

With that in mind, here are our five top tips for managing your business finances.

Keep personal and business finances separate

When you own your own business, it’s easy for your work life and home life to blur into one – and that includes your finances. However, keeping your business and personal lives separate is key to long term success. A separate business account makes it much easier to manage tax requirements, book-keeping and other financial obligations, while also minimising the risk of mistakes and confusion.

It also helps to protect your personal finances from harm should your business fail, reducing your risk of incurring significant debt.

Get familiar with book-keeping practices

Book-keeping is all about recording your business’s financial transactions, allowing you to make financial and operational decisions based on the money coming in and going out of your organisation. If you are new to owning a business, it’s important to set aside some time to get to know the process, reading up on key terms of even taking a beginner’s course.

There are also cloud-based software options that make it easier to keep your own books, assisting you in your duties and ensuring your data is secure.

Hire an accountant

You can hire professional help to assist you with your financial management, such as an accountant or a book-keeper, providing you have the budget for it. They can take away a lot of the work and stress surrounding financial management, as they will possess expert knowledge of relevant laws and best practices, and take the time to get to know your business so that they can apply them to your specific circumstances and requirements.

Make use of liquid assets

During economically volatile times, it’s important to prioritise the possession of liquid assets in your business. In other words, the kinds of assets that can be easily converted into cash. Money on hand or inside a bank account are key examples of liquid assets, ones that are easy to manage and can be paramount in times of economic turmoil.

An emergency fund of liquid assets can be extremely helpful for your business. This could also be your personal finances. While funding your business with personal finances isn’t ideal, in difficult times this safety net can help to see you through difficult periods, giving your business a better chance of survival.

Utilise tools and software

Very few of us go into business because we love doing the accounts or keeping on top of the book-keeping. So, be sure to investigate many of the modern tools and software technologies on the market that can do the heavy lifting for you. Automated accounting programmes are commonly used by today’s businesses, helping to speed up monotonous daily tasks like logging what you spend. These can also help you automate payrolls and analyse patterns in your spending, giving you more information when it comes to making decisions about your business.

Whatever you are seeking help for, TEDCO Business Support are here to help.

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The team at TEDCO Business Support has helped thousands of businesses to grow, supported by the European Regional Development Fund (ERDF), so we’re here to support you.

Get in touch today to see how we can help you. Give us a call on 0191 516 61 02 or drop us an email at hello@tedco.org.

What we offer

TEDCO offers one-on-one support provided by a dedicated team of business advisors and a range of pre start seminars available to clients who are taking the first steps into self-employment. This could be looking at an initial idea and developing it further, looking at how to start a business plan, business competitors, business marketing.

Are you eligible?

If you are looking to start and grow a business we’d love to hear from you. Our friendly team of experienced Business Advisors are on hand to take your call to discuss the support available.

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