Following the formation of a new small business, there’s often a substantial amount of focus needed for hiring new staff, seeking outside investment and managing growth.
As such, it’s easy to forget one key aspect that requires attention throughout operations – sound financial management. It’s important that the necessity of effectively managing finances is understood, as well as the steps needed for correct management.
Here are a few best practices regarding how to best manage the financial side of a small business.
Talk to a professional
Firstly, it’s important to understand that professionals are available to assist in a range of areas. Whether for future financial planning or even simply basic tax operations, these outside experts can be crucial when it comes to providing guidance in the early days of a company.
While they may not be needed on a regular basis, it’s a good idea to stay in touch with a professional accountant or financial manager for advice.
Set aside the time
It’s quite common for small businesses to want to handle smaller financial operations internally, and this is where dedicated time is essential. By setting aside 15 minutes or so every week to review finances, it can be easy to stay on top.
On the other hand, neglecting to review finances on a regular basis can lead to businesses becoming overwhelmed.
Put it in the plan
It’s a good idea to incorporate financial objectives into the business plan. In fact, this is often something that’s required if the organisation hopes to attract an outside investor.
Key goals here should include reaching revenue targets at certain stages, and setting times to take financial staff on board.