Sometimes in reviewing your company’s finances, you find that there’s something that just isn’t working. Maybe some of the investments you’ve chosen aren’t paying off, or you don’t have enough money left over for the marketing you need. Maybe you’re putting too much money into marketing that isn’t working. When it comes to small business, even small flaws in your company budget can hurt deeply. If the idea of rehauling your business’s finances, however necessary, seems like an overwhelming headache, here are a few things to make the process run more smoothly.
Implement at the New Year (But Plan Before)
When you’re planning any kind of financial changes, it’s best to implement them at the beginning of the financial year. It’s a fresh start, and also a fresh tax year, so you won’t have to sort through the change in your finances when preparing your taxes. However, that also gives you time to plan ahead of time. Plan your new budget carefully, taking into account the realities of your business as well as where you’d like it to be. If the new year is too far off and the situation is dire, you can start the new changes at the beginning of the next quarter. The point is to pick a time that offers a fresh start.
Consider Wants and Needs
It’s always a good idea to have a clear picture of what you’d like your small business to become. Visualizing is the first step in making those goals a reality. So there’s nothing wrong with setting out the things you want for your business in order to achieve your goals. However, if your finances are in trouble, it’s time to make a separate list: the necessities to keep your business running.
Write out both lists. Consider your necessities first and how much that will cost. Do you have room left over in your budget? Then start to add on things from your “want” list, in order of priority. You may not be able to achieve everything you want now, but in running your business more sensibly, you may be able to make more of a profit that will help you add onto it in the future.
Be Wary of Credit Cards
Company credit cards can be a handy resource...that can get you in trouble if you’re not careful. You need to be sure that you’re paying at least the minimum payment every month. If you’re in the process of overhauling your small business’s finances, the last thing you want to do is add on more credit card accounts, so stick to what you have at the moment. If you find you’re unable to meet the minimum payments, you may need to look into what parts of your company’s budget you can cut, or you may need to cut the credit card itself. If you keep the credit card, decide how you’ll use it: if things are tight, it might be best to use it only for emergencies.
Save on Office Supplies
If you have an office, you need office supplies, of course, but you might not need to spend as much as you have currently on them. For instance, you can find comfortable chairs and functional desks that will serve your company but cost considerably less than the plush leather chair and massive oak desk that simply looks cool. Compare costs between office supplies providers as well. You may find another provider that didn’t approach you before who has lower prices for all the things you need.
Get Bookkeeping Help from a Professional
Is the paperwork piling up while you overhaul your company’s finances? Do you need a professional set of eyes to be sure that your new budget is on track? TCA Darwin offers advice on business structuring and formations, preparation of financial statements, and training for cloud accounting implementation. We can help you find the best systems and practices to ensure that your business stays on budget and has a chance to grow. Contact us today for more information or to book an appointment.