Running a small business is personal. However, it is essential to separate yourself from your business, specifically when it comes to finances. If managing finances is something that does not come naturally to you then following some of the tips below may help you turn a weakness into a strength.
Have separate bank accounts
This makes it easier to keep track of your business finances by keeping all the money in one place. It is important to remember not to use your business account for personal purposes even if you are a sole trader.
Keep strict records
It is vital to know how much money you put into your business. This means you are easily able to see the growth of your business and its viability. Think about accounting software to streamline this process and ensure reliability.
Pay yourself
Your business account should not be used personally. To avoid this, deposit your wages into your personal account each pay event.
Think about travel costs
Plan business trips, but keep them frugal to set a good precedent for your staff. They can be a fantastic networking tool but should not be setting you back a disproportionate amount. Remember to keep log books on your work vehicles to separate private and business use, to be compliant when claiming tax back on the costs.