Today’s post comes from special guest writer Jim McKinley from the financial blog Money With Jim. In the following post, Jim shares a few of his best ideas to keep business owners on track with their finances.
If you run a small business, you might feel like you always have money on your mind. Learning to organize and manage your finances as an entrepreneur can be challenging. But with the help of the tactics outlined in the following tips, you’ll be able to ensure that your personal finances and company accounts are stable.
Manage Your Investments
When you’re running a small business, you don’t have access to company benefits to prepare for your retirement. That means you have to take matters into your own hands and come up with an investment strategy. Learning to invest properly and choose stocks with lots of potential for growth can be tricky, but working with a financial planner can help you diversify your portfolio with the right stocks. At Your Business recommends investing in stocks across several industries to help reduce your financial risks.
Use an Online Payroll Platform
Do you have trouble keeping track of your company’s payroll? Transitioning to an online payroll platform that allows for automatic payroll scheduling would be a great choice! You can look for software that provides functions like same-day direct deposit and automatic calculating and tax filing. And by choosing a service that offers an iOS and Android payroll app, you can even process payroll while out of the office.
Identify Waste in Your Budget
Revisit your business budget from time to time so that you can make sure you aren’t wasting money. All too often, minor expenses can add up, going unnoticed for long periods of time. Block off some time to go over your budget and note where every dollar is going. Perhaps you’re paying for software or equipment that you rarely use, or you’re overpaying for certain supplies based on industry rates. If you notice any waste, it’s time to make plans to cut it.
Negotiate With Vendors
Do you suspect that you could get a better deal on certain materials or services? You could try switching to new vendors, but if you truly enjoy working with your current vendors, you could turn to negotiation instead. Remember, negotiating well takes practice, so come to the conversation with a solid idea of what you want to ask for and which prices you’re willing to accept. Negotiation Experts recommends offering to increase the size of your orders if possible so that while you will receive a lower rate, your vendor will gain more business.
Work with an Accountant
If you feel unsure about making major financial decisions for your company, or you’re struggling to navigate the tax filing process, it’s time to work with an accountant who specializes in supporting small business owners. You can ask other entrepreneurs in your industry for referrals, but it’s important to get in touch with anyone you’re thinking about working with and asking them questions about which services they provide. After all, you want to make sure that they have worked with companies like yours before. Your accountant can help you with everything from financial projections to pricing your product lines to finding tax deductions that you may not have known you were eligible for.
With so much effort put into growing your business and managing your finances, it’s critical that you make sure your profits and investments stay protected. If you don’t have enough business insurance coverage or if you need a whole new policy, connect with a reputable firm like G.D. Herring. We offer a range of policy options to choose from, and we even work with high risk businesses and difficult to value assets.
As a business owner, you know that without a steady salary coming in from an employer, you need to be proactive when it comes to managing your company’s finances and your personal portfolio. By keeping track of your finances, you can ensure that your company thrives. With these tips, you’ll feel confident about your financial future!
Jim McKinley is a retired banker with almost 30 years of experience in the financial world. He created Money with Jim to share his advice and other resources on a variety of financial topics.