Meeting the Financial Demands of Running a Small Business

Running a business can be a really exciting, fulfilling and rewarding experience. It allows you to make your own mark on the world and make an impact on a lot of lives. Running a business is also challenging - you have to manage staff, build the systems for the business, generate leads, and you also have to manage money. Big companies have full-on finance departments, but for small businesses, it’s different. Dealing with money can really be stressful, but it’s going to have to be a priority because it impacts so many different aspects of your business.

What are some of the ways you can make handling the financial side of things easier? Here are a few key considerations you have to make.

Treat It Like a Business

It might seem like an obvious piece of advice, but not every business leader actually treats what they do as a business, financially speaking. They commingle their personal money with their business funds, and they don’t even set things up in the name of the company. This makes it really hard to really dial in the finances and do things like paying taxes on time and staying organized.

One of the first things you need to do is start running everything like a business. That means legally registering the company or failing that, having separate accounts. If clients pay you, get them to send it into your business account and then you can pay yourself and your staff from there. It’s a more efficient way to run things, and it will definitely make everything easier.

Track Every Dollar

Entrepreneurs don’t just have to be good at the jobs they do, they also have to be good with money because that actually impacts the longevity of the business. One thing that’s really important is actually knowing how money is actually moving in and out of your company. This allows you to see where you might be overspending and where you can change. There are apps you can use to track all your expenses, and if you can sit down every week to look at the numbers it will make you a better business owner.

Hire the Experts

As a busy entrepreneur, you often find that you forget important payments and other tasks in your business because you already have so much on your plate. This also creates a lot of stress and chaos which makes it harder to focus on what you do best. Why stress over that when you can hire people who are equipped to help entrepreneurs manage their finances better? The really great thing is that you can hire accounting and financial firms that have expertise in your specific niche. If you’re a real estate team leader, you can hire a firm that serves that niche. If your business is more on the creative side, there are people who can help you with that too.

According to cannabis accounting firm, Accountabis Advisors, “it’s very important for the financial partner you work with to have a deeper understanding of the intricacies of your business and your niche. That way, the solutions they provide keep you ahead of the curve, and give you the exact tools you need to succeed, instead of more general advice and solutions.” The right accounting firm is going to be a key partner in your business and they won’t just help you manage the day-to-day of the business, they will also position you for the future. They can help you with planning ahead, investments and new opportunities, which make your business even stronger going forward.

Bring a Finance Person Onto Your Team

An additional step you can take to managing your business finances better is actually getting someone inhouse to take responsibility for that side of things. Many entrepreneurs are creative visionaries who work best when they’re focusing on the innovative ideas that keep the business moving forward. Usually that means the implementation and procedural side of the business can be quite tough for you to get into. One thing you can do is bring on a financial manager or an operations manager who can deal with that side of things so you can focus on being the CEO. Many business owners will bristle at the idea of having to pay another salary, but getting someone who is really good at the finance side and is passionate about it will actually lead to a more profitable business. If you find the right person for this role it will actually be a huge relief for you because they will allow you to truly play to your strengths without worrying about everything else.

Money is a huge part of a business, and oftentimes, entrepreneurs don’t pay enough attention to it to the deficit of their staff, clients and the entire company. By putting in place a few measures and key hires, this can be changed to the benefit of everyone involved.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes