Managing finances is often cumbersome to entrepreneurs who have just started their business venture. One wrong approach can result in huge financial burden at the end of the day. Knowing the basic must-haves may not give you detailed understanding on managing your finances, but it gives a great introduction to proper financial management. Here’s a brief discussion from VentureBankOnline.com:
- Not personal, but business bank account. An entrepreneur may disregard the idea of applying for a business bank account thinking he can use his personal account instead. If you are thinking of doing the same thing, then you better think again. Using a business bank will prevent the troubles of separating personal and business expenditures, and tracking account balances every now and then. For smoother financial management, get a business bank account.
- Bookkeeper or accounting software. You may choose to manage your own finances if you think you can handle the task, but otherwise, hire a bookkeeper. You may also work on your books, payroll records, and invoices, and then hire an accountant or bookkeeper later when it is time to file your taxes and provide annual financial statements. But, when managing finances on your own, you may want to consider using an accounting software like Wave Accounting (It’s free!) and This will simplify bookkeeping and provide you with well-organized financial reports.
- 24/7 access to reliable advice. Do not be afraid to ask for help. If you have questions in mind or need advice, it is best to have a mentor. It may be someone you personally know like a fellow entrepreneur with years of experience, or counselors from reputable business organizations.
You have no idea what small financial management mistakes can do to a business, especially to one that has just started. Remember that the life of every business lies in cash flow. So, it is better to learn about prevention rather than cure, for sometimes, the remedy is just too late to patch things up.