Being an entrepreneur for many years, I know first hand just how important financial handling is for entrepreneurs. I have had my issues with finances and have learned a lot from the mistakes made. I have also learned that it is much easier to learn from other people’s mistakes and errors than it is to experience them ourselves.
As well as my wife and I creating a system to keep our personal finances straight, I also had to have a system to keep my business finances straight.
I have researched many other successful entrepreneurs on how they handle their business financial structure, and I want to help learn without having to suffer through the stress improper business financial management can cause.
The top 14 tips to keep your business finances straight
I am starting with #14 and will work up to my top financial management tip. I suggest that you print or write these down so you can refer to them for your own good, or to help other entrepreneurs.
Keep your finances straight tip #14: Take a basic accounting course
A little education can go a long way. You can find basic accounting courses at nearly any community college, or if you just type basic accounting course into your search engine, there are both free and paid course you can take online.
Even if you have professionals handling your business finances, you still need to have awareness. Taking a course will help you understand what you need to basically know in your business finances.
Keep your finances straight tip #13: Maintain financial organization
Having a financial organizational system is a MUST! You should have receipts filed by each month. Tax forms should have a file. Bank statements should have their file.
If everything is organized and you have a question, you can easily find the answer to that financial question.
Make sure and read to the end of this post because I have a way you can stay financially organized easier as an entrepreneur.
Keep your finances straight tip #12: Use negotiation tactics
Learn to negotiate nearly everything. As a business person, you should understand that their are always competitors “under-cutting” you and your prices. That is how business works, so you should always negotiate vendors you use. Check consistently for better prices, better features, etc…
Keep your finances straight tip #11: Find a credit union or bank suitable for your financial needs
You want to have a business account that covers every need you may have. You will want a business credit card and hopefully you can find an interest bearing checking account.
I recommend checking credit unions because you can normally get the best loan options through them.
Keep your finances straight tip #10: Protect the most important asset… You!
As an entrepreneur, you are the most important asset in your business. So what happens if you are hospitalized for an extended period? And, hopefully not, but what about your family if you die suddenly?
Do you have enough insurance to cover these situations?
Keep your finances straight tip #9: Pay yourself
This goes right along with #10. The most important asset must feel like the most important asset. You MUST pay yourself! You must absolutely ensure that you pay yourself even if you are taking away from investing more in the business. Either way, by paying yourself, you ARE investing in the business.
Keep your finances straight tip #8: Automate bill payments
As entrepreneurs, we are busy and being late on a bill payment can cost extra. There is no sense adding that extra stress to your busy duties. I suggest you automate all bill payments you possibly can.
At the end of this post, I will share a tool that can help you do that.
Keep your finances straight tip #7: Save for retirement
Maybe you are not ever planning to retire but just as I stated about having insurance, there could come a time when you are unable to work. I suggest having a retirement fund that you put a small percentage in to save for retirement.
Keep your finances straight tip #6: Diversify
Learn to diversify your investing. As many have said, Don’t put all your eggs in one basket.
Find other investments so when is on the down side, another will be on an up-slope.
I suggest opening a “lean” account. And hopefully, you never have to dip into that account and it will add to your retirement account.
But by having a “lean” account, you are creating a safety net if anything happens that is unforeseen financially.
Keep your finances straight tip #4: Have a budget
Draw up a budget on what you will spend in the business by the week, month, etc…
It is just wise in business and personal to have a budget.
Keep your finances straight tip #3: Keep personal finances separate from business finances
It may be tempting to use your business credit card to purchase that new vacuum cleaner for the home, but it isn’t financially wise to do so.
By keeping your personal finances separate from the business, you will be able to manage each one much easier.
Keep your finances straight tip #2: Contract a professional
It can take a lot of stress off an entrepreneur’s shoulders if they just outsource their finances to a bookkeeper or accountant.
While they are handling the financial side of the business, you can be handling the money-making tasks.
Keep your finances straight tip #1: Use an accounting software
Many of the tips I listed earlier can be managed just by using an accounting software.
Back in 2008, I developed The Expense Tracker. It is a simple money tracking system that has been featured on many top media outlets. Many direct selling companies use The Expense Tracker along with other companies.
As an entrepreneur, I know The Expense Tracker will help you get your finances straight.
Just CLICK HERE and let’s get you started straightening out your entrepreneur finances.
Thank you for visiting my blog today. I hope this post helps you in your entrepreneurial journey.
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Thanks again and may the profits roll into your accounts.