As a new business owner, however, you can’t help but worry about the financial aspect of your business. What if people don’t come in? What if my steady stream of work suddenly dries up? Questions like these may pop up once in a while, but it’s a natural feeling. Instead of binge-worrying, look into the tips below to manage your finances.
1. Automate Your Business Accounting
Automated accounting isn’t only for huge businesses. Small- and medium-sized businesses can also benefit from it. If your business is fairly new and you haven’t hired an accountant yet, look into some systems that are user-friendly that even non-accountants can understand and use. This will put your business in a better position because reports are generated faster by software programs. By the time you get an accountant, he/she won’t have a hard time coping.
2. Educate Yourself with Applicable Laws
As a business owner, it’s important you know about laws that you’ll be required to follow. This may include employment laws, unemployment insurance, workers compensation laws, Occupational Safety and Health (OSHA) regulations, etc.
This will ensure that your business is safe and you won’t have problems regarding tax filings, safety regulations, overtime, working hours, hiring and firing, among many others. “It’s better to acquaint yourself with these laws in the early stages of your business,” long-time Miami businessman Lee Rosen says. If you’re unsure of something, get the help of a business attorney.
3. Your Business and Personal Banking Accounts Should be Different
While this advice may seem mandatory or given, you’d be surprised at how many business owners started out using their personal bank accounts. This is perfectly understandable when one is merely starting out, but as you see your business getting bigger, make sure to open a business banking account. Don’t ever mix your personal account with your business so you can keep track of your finances better.
4. Get In Touch with the State Government
Once you’ve decided to open a business in South Florida, set an appointment with the Office of the Secretary of State to know what forms need to be filed. According to Lee Rosen, you’ll need to register to withhold and submit income taxes if you have employees, as well as licenses from your city or town or the state. If your business involves selling products, make sure to get a vendor’s license.
5. Know Your Strengths
Business owners often do the mistake of trying to exceed at everything. Growth and expansion are fulfilling, but both need to be sustainable. You should find out what areas your business excels in and what your limitations are.
You should prioritize building your core strengths instead of wasting time and money on activities that don’t help your business at all. You should also work to develop a good relationship with your employees and the people who help your business to be profitable.
On a final note, Lee S. Rosen says that identifying business trends is also crucial. Find
out which months you’re likely to have slow revenue so you can prepare for it. A backup plan is necessary to help keep your business survive despite the slow growth that it’s temporarily experiencing. With hard work and a bit of luck, you can overcome challenges and take steps toward future growth.