3 Steps to Gain Complete Financial Control of Your Company
Any small business owner will know that keeping on top of a company’s finances is no mean feet. Just because you had a great business idea and have created a successful business does not mean that you suddenly know everything you need to know about bookkeeping and profit and loss accounts. We’ve all been there and it can be, well for want of a better word, a bit of a headache. So for those of you struggling with getting a handle on your business finances follow our three steps to finally get complete financial control of your company.
Call In The Pros
Sometimes we just need to admit that we can’t do everything. If you have a growing team and a growing business you are going to need to be extra sure that you are doing things right. Therefore hiring an accountant to come in for a set amount of hours every week or month and thinking about hiring a financial advisor to look through your business numbers is a good idea. Having someone take complete control of the income and outgoings of your business will offer you great peace of mind that you have a knowledgeable and trustworthy individual keeping that side of your business organised and efficient. Similarly a financial advisor will be able to guide you and your business in the right direction in those moments where you need a little helping hand.
Get your Head Around It
Although perhaps, at some point in your business, you won’t need to do it, you certainly need to have some knowledge of finance and accounting. One of the best things that you can do as a business owner is to educate yourself in all areas of your business, finances included. Trust us, putting the hard work in at the beginning is the best way to avoid having to hire bankruptcy attorneys later on down the road. Luckily for us, there is a whole wealth of information available to us for free online in order to start understanding how to read financial statements, how to get your head around profit and loss accounts and how to start putting together well structured financial projections for the future of your company. So spend time understanding how to organise the financial department in your business and continue to build on that knowledge to ensure you are staying abreast of it.
Personal & Business Accounts
One very difficult lesson, that a lot of business owners have learnt the hard way, is that by using the same account for your business and your personal life you could be setting yourself up for a big fall. Merging the two accounts can mean complete bankruptcy should you lose your business. As everything will be tied in together; your business, your home, your car, your assets. If one goes, it can all go. Therefore keeping your business and personal accounts separate is one of the best things you can do to protect your investments and assets outside of your business.