Finances are a big deal for any business–and I daresay anyone. Doesn’t matter if you have a 9-5, you’re a contractor, you’re planning to save towards a project you’re working on, you’re a freelancer, or you’re a businessperson.
Finances go a long way in determining how well–and how far– things go. And as a small business, service provider, or freelancer, managing finances can be confusing, hectic, and sometimes, nerve wracking.
There’s so much to take note of, so much to record and remember, and so much to cut down to ensure you don’t go bust.
That said, we’ve decided to take out the “hectic” and show you with a bit more organization and the right, smart financial strategies, you can take control of your finances and set your business up for success.
So, let’s dive right in and show you how to manage your finances better and keep your business afloat:
- Create a budget – Have you ever gone to the market without a list–or budget? Well… I have and I’m not proud to say how much I spent on “unnecessary purchases” when I got home and did the math. This points to a crucial point about finances… the first step to managing your finances is to create a budget. This will help you understand where your money is going and where you can cut costs.
- Keep track of your expenses – Record all your expenses, no matter how small they may seem. This will help you identify patterns and make informed decisions about your spending.
- Take advantage of tax breaks – As a small business, service provider, or freelancer, you may be eligible for certain tax breaks. Make sure you’re aware of these and take advantage of them.
- Use invoicing and accounting software – Invoicing and accounting software can help you keep track of your finances better and stay organized… without breaking a sweat. This is where a Workstedi account comes in handy. Workstedi helps you create invoices, receive payments, and get customer reviews and feedback.
- Get a separate bank account for your business – It’s important to keep your personal and business finances separate, so consider getting a separate bank account for your business. Workstedi helps you with this as you can open a separate digital bank account with it.
- Keep your records up to date – Make sure your bookkeeping is up to date, this will save you a lot of headaches at tax time.
- Be prepared for the unexpected – Have a contingency plan in place in case of unexpected expenses or a drop in business.
- Seek advice – If you’re unsure about something, don’t be afraid to seek advice from a financial advisor or accountant.
- Be mindful of cash flow – Keep an eye on your cash flow, and make sure you have enough to cover your expenses.
- Invest in your business – Don’t be afraid to invest in your business, whether it’s in new equipment or in training for yourself or your employees.
To bring it all home, managing finances for small businesses, service providers, and freelancers can be a tricky task, but it’s not impossible.
And this is because software like Workstedi is here to help. So, create an account today and start sending invoices and managing your money better.
