If you’re an entrepreneur you’ll know how valuable your time is, and how little of it you seem to have as you try to get your business off the ground. Bookkeeping is the backbone of your business, from the moment it begins. If you neglect it, you’ll find it so much harder to achieve success.
Take these three key tips to heart, and you’ll be primed to achieve your goals.
Hire an accountant
You may roll your eyes at the first tip being to spend money outsourcing your bookkeeping, but, it’s something that you stand to greatly benefit from. Think of it more as an investment in freeing up your own time to develop and manage your business, rather than a pure cost.
An accountant will help you start as you mean to go on. They’ll be able to provide ongoing support, help, and advice to ensure your accounts are all kept in good order. As your business grows, this will become even more important, so it’s a sound idea to invest early.
Manage your invoices
As an entrepreneur you may feel that customer loyalty is more important than chasing up unpaid invoices. Or, you may simply not have enough time to. Unpaid invoices can quickly stack up, however, and put a serious dent in your business’ all-important cash flow.
The key to avoiding this is to put a structured plan into place early. Develop a plan for payment terms, what constitutes a ‘late payment’, and what additional charges they may incur. Then make sure you push yourself to collect money that you’re owed.
Separate your finances
If you’re an entrepreneur running a single-person operation, it can be tempting to start blurring the lines between your finances and your business’. Your business is you, right? It’s easy to think that way, but the truth is you’re setting yourself up for failure.
Establish a business bank account and get a business credit/debit card as soon as possible. Then make sure you only use those for business purchases. It won’t take long to get into the habit, and it’ll make your cash flow much easier to track effectively.