Ask a seasoned manager – or better yet, ask a successful entrepreneur who was able to start a business out of nothing – and you’re guaranteed one thing: it’s about being able to take risk whilst keeping a good eye on the cashflow at the end of the month. Cashflow is incredibly important, and in order to understand how your business is doing, you need to be able to have some great bookkeeping done.
It’s not always easy, especially not if you have so many other things going on. The manager’s job is never finished, and a manager who wants to make sound decisions needs to be able to rely on professionals who can give a summary of the financial situation of the business in two paragraphs or less. Bookkeeping matters – it matters a lot. Having trouble with the books whilst starting an enterprise? Here are the top five tips to managing your books as a start-up business.
Establish a system
In order to be methodical, you need to have a system. This system could come in many forms – and chances are that you’ll have to build your own unique way of doing things, because every business is indeed unique. But you’ll have to streamline it. There is plenty of software available, even for free; it may help. It’s about protocol and about following a certain set of rules – the sooner you develop these, the sooner you will understand your weaknesses and strengths.
Keep records from the start
Keeping records is often seen as a hassle, but it is (in fact) a life-saver. Sure, it’s about proper bookkeeping – but it’s about more than that. It’s about being able to learn from the past – it’s about analysing your business model, finding patterns, and improving things. Keep records.
Get free advice and skills
You’d be surprised at what kinds of services are available to you, at a very low cost – avail of them. The professionals, like accountants central London from GSM & Co., are often able to save you a lot of money.
Think about taxation
Unless you know the taxation code very well, chances are you’re paying too much tax. Take advantage of what a professional taxation expert has to offer.
State your claim
You have expenses, so make sure you write them down – and claim the benefits of those!
The good news is that the government actively encourages people to start their own business – and they do so by being flexible and giving special allowances. The government does this simply because economists realise that the small and medium businesses are the backbone of the country. So take advantage of the laws, grants, and allowances that are in place. Learn how to save money. Learn how to do it in a professional way. Prepare for growth.