Business owners big and small consistently have trouble making time for the small things such as finances within their companies. Many entrepreneurs are big picture people and don’t want to “waste time” with the day-to-day running of their business. I recognized this and wanted to write a blog to help business owners have some tips from what to expect and also aid them in creating the best company they can which will set them up for success. Below are 5 of my favourite tips:
1. Don’t Procrastinate: “One of the biggest mistakes new entrepreneurs make is that they put off their bookkeeping needs, (source).” This has to be one of the most important tips for business owners as if the bookkeeping isn’t in order you can run into some serious debt and trouble. Not inclined to do it yourself? There are amazing resources online and hiring a bookkeeper can be one of the best decisions you ever make. Bookkeepers entire job is to make sure you’re organized, and on track with your expenses. This is an invaluable member to have as part of your team and can save you time and money.
2. Be Prepared: Though you don’t want to think about it, “you need to be prepared for hard times. Keep your steady goals in mind and work towards them no matter what, but have a plan in place just in case those goals don’t pan out as expected, (source).” No one wants to dwell on the failure of their business and nor should you but it pays to be prepared and honest with yourself.
3. Focus on Your Strengths: Wanting to start from scratch is admirable but can working smart not hard is the way to go. “It’s far more cost-effective to work with existing providers and use the tools that they’ve already perfected, rather than trying to reinvent the wheel on your own, (source).”
4. Don’t Forget to Deduct: Deduct wherever you can! This is one of the biggest bonuses to owning your own company and managing yourself. Truly don’t miss out where you can save! “There are many deductions business owners should be on top of, ranging from accounting and legal fees to home-based business write offs and vehicle expenses, (source).” Bookkeepers come in serious handy when it comes to deductions as we can help you keep organized so you don’t miss any.
5. Keep Personal and Business Separate: This tip comes up time and time again as it can make a huge difference in running your company. “Whenever possible, separate personal and business items, such as bank accounts or credit cards, for ease of administration and to take advantage of different rules, (source).”
Having some tried and true tips to help you get started and also stay on track can be incredibly helpful in the business world. Having a bookkeeper is consistently one of the easiest ways to gain a lot of freedom and they can be a wealth of advice and expertise.