You have a business idea, the marketing plan is in action, the website is being made, you’re ready. However, when it comes to finances many business owners stick their heads in the sand and cross their fingers that everything will work out.
Its vitally important that care and attention is given to the finances because without proper management you won’t have the cash to keep your business alive. Here’s how to get your finances in order before the doors are even open:
Have A Budget
Make sure you spend some time putting together a budget. This will ensure you have a master document that shows your anticipated revenue and expenses. This document is vital because once the business is open you can refer back to the budget to ensure your spending isn’t getting out of control and track your sales progress.
Also, by preparing a budget you can ensure that you’re pricing is correct. There is nothing worse than 6 months into your business finding out that you’ve been selling at a loss!
Get Bookkeeping Software
Ditch the spreadsheets, they take too long to put together, accountants hate them and there is always mistakes. Get some cloud bookkeeping software such as Xero or Quickbooks and sync up your business bank account. Now bookkeeping can be done quickly, from anywhere and mistakes are next to none.
Document A Process
Keeping on top of the business finances is important. Design a process to ensure you keep on top of numbers and utilise software to help you do so.
So firstly set some time aside each week to ensure the bank is reconciled and up-to-date. Then once a month, review the past months performance against budget and what you can do meet your targets.
Look into using additional software in tandem with your accounting software to help give you more data and save you precious time. So for example you can use Receipt Bank software to scan receipts and have them sent to your bookkeeping software or you can sync your Shopify store data to your bookkeeping software.
Find An Advisor
Before opening the doors search out a bookkeeper or accountant to work with you to help provide advice to grow your company. Having advice from day one will help guarantee your business success and help you to grow at a much faster rate.