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Managing your Money whilst running a Small Business

Wednesday, February 06, 2019

Managing your Money whilst running a Small Business

Running the operational and commercial side of small business can be tough, let alone having to also manage all the financial matters that flow from it alongside.

Keep business and personal affairs separate

By keeping your business finances separate from your personal affairs, you won’t end up complicating any Tax issues or exposing yourself unnecessarily to personal liabilities. These are just a couple of the many issues that can arise when you mix business and personal affairs. Another recommendation is to not use your personal finances to deal with a business financial issue, since this will often create unnecessary problems in the future.

It is much easier to keep your business and personal affairs separate if you make a budget for both. For example, if you have any personal loans or other personal financial matters, then these should be dealt with through your personal bank account, and vice versa for your business matters being dealt with through your business bank account. Further, if you have decide to engage an Accountant, this separation of personal and business issues through separate bank accounts will assist your Accountant enormously, and as a result minimise any unnecessary confusion, typically then leadingto your reducing the amount of Taxes you pay.

Negotiating with Suppliers

Always negotiate with your suppliers rather than simply settling for their asking price. The likelihood is that you will be able to negotiate a better deal. For example it is often recommended to fully understand their payment terms and any fines for late payments, since you can often save more money overall by having a longer pay period. Don’t just settle for the first supplier that you find - search around and seek out competitive deals from other suppliers since it’s very likely that these will be lower than that offered by your first supplier.

Be on Time

Pay your business bills diligently. Treat them in exactly the same way that you deal with your regular monthly personal financial obligations.. If you have used a credit card or taken out a loan, the cost of making payments late is rarely worth it, and could set you back even further. There are even higher fines & penalties for paying Taxes late.

Ensuring that you keep on top of these could be managed through a weekly or monthly reminder, or set into your schedule each month, so that you have a specific time to carry out these tasks. If you avoid or forget paying your business bills, Taxes, or any other business financial obligations on time, the financial cost can often have a significant impact on the absolute level of your annual profits.

Consider engaging an experienced Accountant

If the stress of all or some of these issues begins to feel too much, then urgent consideration should be given to engaging an Accountant, & can often be a life-saver. An experienced and suitably qualified Accountant will be familiar with all of these matters, and often much more too, , enabling them to set you in the right direction and manage your money in a much a more professional and appropriate manner, ultimately resulting in reducing your Tax liability and increase your annual profits.

Having considered the issues discussed above, are you now thinking of taking the stress-free option, and looking to engage an Accountant who can provide you with all the financial expertise and support referred to above ? If so, please do not hesitate to contact us at Accountancy Partners, and allow us to provide you with a no-obligation proposal to consider engaging Accountancy Partners as your Accountant.

Call: 033 033 36572


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