When you run your own business you are automatically invested in research, development, marketing, and new business development. These are the lifeblood of your business, and probably the tasks that most inspire you. It is less likely that you will launch yourself immediately into an effective financial routine, yet accounting and other financial tasks are an essential part of running a business in London. Get your finances in order and you have an easier time, and are more likely to be able to dedicate the majority of your day to the tasks you most enjoy. Here are some tips for getting your small business financial management up to speed.
- Separate it out
It quickly becomes complicated to unravel your finances when you use your business bank account to pay for a meal with your wife, and your current account for a new computer, meaning to pay back money into the correct accounts which you never do. It is a headache when business and life expenses get combined. You need a clear account of where you spend your money and receipts so you can accurately claim for business expenses. It is a good idea to have separate bank accounts for business, although you can also use the same account so long as you keep accurate records.
- Get a Professional
It is tempting to save some money and do all your accounting yourself, but you will quickly see how valuable a small business accountant can be. Yes, you are paying for their services but with their expertise they quickly identify ways you can save money on your tax bill and be more efficient with your financial management. When looking for accountants central london offers a wide choice. Look for someone who is practically able to help you – someone who is located near to you, and who focuses on areas where your business has an interest. Also, reading on How to Create an Income Statement for Your Business will help you a long way.
- Set Aside Time
Put aside a simple 15 minutes every week to look at your finances and make sure they are organised. 15 minutes is very little time, but it proves invaluable as you stop financial tasks spiralling out of control. When you have control of your finances and you are more informed about how your business is operating financially, you can make better business decisions in less time. Your stress levels will go down, and you will find you have more time when you need to fill out tax returns.
- Keep an Eye on Costs
Always be looking at your business spending, whether it is checking to see if there is a cheaper contractor, or considering how you pay your staff. A good accountant in London will also be able to give you insights into this.