If you own a small business, you’re probably pretty up to date with how it all works. But as with anything, there’s always something new to learn, so we’ve put together 4 tips to help you keep your finances on track in your small business.
1. Keep business and personal cash separate
This should be a no-brainer, but it can be difficult to maintain, especially if you’re struggling to build your business up. Because you can claim business expenses, it can also be tempting to lump it all together with more personal items, but you need to be careful because if you get audited, not everything will count as a business expense and you could get into a bit of trouble (see what you can claim for here). It’s a good idea to keep everything as separate as you can, particularly when it comes to credit card spending or loans.
2. Invoice on time and actually follow up
A lot of small business owners invoice like clockwork, but then don’t have the time, or don’t want to deal with the follow up afterwards. It’s important that you have a payment process in place that you can stick to so that you can get paid on time, every time. If you invoice straight away, send a reminder a day or two before it’s due, and then give your client a call if it’s not paid by the date you’ve specified. It’s not something most people like to do, but if you want to ensure your finances are doing well, then you need to get it done. If you use Xero you can also set up automatic reminders, as well as autopay to make it easier for clients to pay.
3. Know your tax obligations
Again, this one seems obvious, but if you don’t note down important tax dates and make sure you have enough to cover your taxes, you could find yourself in a tricky situation. Keeping track of your payment dates is particularly important if you need to make regular GST payments as these can creep up on you during the year. If you’re not 100% sure of your tax obligations, come and have a chat with our expert accounting team – we can get it all sorted out for you!
4. Get professional advice
Whether you don’t have the best handle on your business finances, or you just don’t have the time to keep track of everything, it’s best to get the professionals involved. Not only can accountants help you with your tax obligations, but they can also give you some great tips and advice for growing the profit of your business overall. From cash flow forecasts, to bookkeeping and payroll, our accounting team at Haven can take care of the financial side of your business so you can focus on what you do best.