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Money Management Tips for Small Business Owners


There are a lot of different challenges that business owners face when they are starting and managing their business, but money is the main problem. By modifying your processes, you will be able to give your business a financial overhaul. Here are some easy, practical everyday actions you can use to manage your money more effectively.

 

Don’t mix personal and business expenses.

There are a lot of reasons on why you should mix your personal and business expenses, you could experience tax issues, personal liability or different accounting records if you do this. If money begins to get tight you need to resist the urge of using your personal funds to help out your business because it creates a mess in the future.

To help maintain a clear separation of your expenses set up a personal budget and a business budget and make sure you stick to them.

 

Negotiate with vendors before signing for anything

If you are making purchases from vendors or contracting with suppliers, try negotiating for a better deal. Always make sure you examine purchase terms like grace periods or late payment penalties when making a decision.

 

Pay your bills on time!

You pay for your personal bills on time so why wouldn’t you do this for your business bills? If you pay your credit card or loan payments late it can be expensive, as well as paying your taxes late. Sometimes paying late can result in serious penalties. To help you keep track of your payments set up monthly reminders, so you don’t fall behind, this is a great tip if you’re a start-up business as profit-loss margins are thin.

 

Basic Accounting Skills

Even if you have a bookkeep or you work with an accountant you should know the basics of business accounting. You can take accounting courses online to improve your knowledge on how cash moves in and out of your business. The more you understand your businesses finances and cashflow you will be more prepared to make smart money management decisions.

Added: 21 Feb 2019 12:57


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