04
Aug
As a small business owner, every financial responsibility from managing expenses to tracking revenue streams is yours. However, having a solid financial strategy can help you not only stay afloat but thrive in today’s competitive marketplace. In this blog post, we’ll share the top five financial habits that successful small business owners do to keep them financially secure.
Plan For Major Expenses
Successful small business owners know that planning for future expenses is crucial to their financial health. They don’t wait until something breaks or needs replacing to start budgeting for it. Instead, they set aside money for anticipated expenses, such as upgrading their facilities or purchasing new office equipment. With smart planning, you can avoid dipping into your cash reserves, which could potentially jeopardize your business operations.
Set Aside Money For Taxes
We all know that taxes are a fact of life. But what sets effective business owners apart is setting money aside for taxes, as it’s crucial to avoid any surprises come tax season. By systematically putting money aside for taxes, you can avoid late payment fees and penalties. Additionally, this habit also helps you track your revenue streams, as you have to ensure you have enough funds to cover your tax liabilities.
Keep An Eye On Your Invoices
Late and unpaid bills can significantly hurt your cash flow. Successful small business owners make it a habit to keep an eye on their invoices and follow up promptly with clients who have overdue payments. Additionally, they also make a plan for if clients are 30, 60, and 90 days late, such as sending out reminders or adding overdue charges. By implementing these habits, you can avoid cash flow crunches and ensure that your business can continue to operate smoothly.
Save For Emergencies
No matter how well you plan, emergencies can still happen, and a smart business owner will have a contingency fund in place to cover such costs. This doesn’t necessarily need to be a large sum of money, it’s more important that you have something set aside to pay for unexpected expenses. That way, if an issue arises, you can address it quickly and avoid having to dip into your business’s operating budget.
Consider Hiring A Professional
Managing your financial books can be a daunting task, especially if you’re a small business owner trying to grow on your own. Fortunately, you don’t have to do it yourself! Hiring a professional bookkeeper can have significant benefits for your business. We can provide you with valuable day-to-day insights and help you make informed financial decisions so you can focus on what you do best – running your business.
With the bookkeeping services from Keenans Accounting, you’ll have the confidence in knowing that your finances are in order and your business is on track for success. Call 705-526-7628 to learn more.