If starting your own business isn’t stressful enough, now you have the complex world of finance and accounting to keep you up at night.
Getting started will have been a swift education on money-management in a business sense, most business owners start out not knowing their personal credit score, or how to self-assess their taxes. Yet now, rather than becoming easier, you have more things to think about - like payroll and invoicing. As your business grows the more, you will have to do and think about. And then there’s the problem of investing profits to maximise growth - feeling stressed yet?
On average, small businesses are in debt of around £30,000, says the Independent. And part of this issue is the lack of control over the business’ money. Lack of organisation in records can lead to money being wasted and profits plummeting. No potential client wants to get involved with a company that can’t control its finances.
Well, there are ways in which you can help relieve a lot, if not all of that stress. And they come in two forms;
The first is to become a financial whiz - it sounds rather blunt, and a bit impossible. But learning and understanding the financial world will allow you to come to grips with your growing company and the accounting issue surrounding its success. You need to be disciplined and organised; there is no space for leaving it for tomorrow and half-hearted record-keeping. You will end up bankrupting your business or lose clients and employees if you do.
You can take a course on accounting at most universities, or through online sites. Or you can self-teach through trusted websites, or meet with financial advisors. This way may leave you with all the work still, but it also allows you to remain in control over all of your business affairs.
Even if you outsource the financial parts of your business, it is still a good idea to have a working knowledge of accounting to keep an eye on your finances - at the end of the day, this is your business.
Which brings us to the second option; outsourcing or delegating. If you can’t hire someone to deal with your finances in-house, then outsourcing them to an external company is a good option. You can find specialists on the internet for things like bookkeeping for medical practices, or for law firms and so on. These companies make their money by keeping detailed records and control over your business’ money - they are as invested in you performing well as you are.
Whichever your choice, never distance yourself from understanding the finances surrounding your own business. Understanding is the key to success in every aspect of your company; you wouldn’t sell a product you didn’t have intimate knowledge of, nor would you hire a new employee without an interview and research, so why would your finances be any different?