4 Simple Tips For Managing Small Business Finances


As a small business owner, by its very nature, you are likely running your company with limited resources. You have limits on your available cash, your equipment and limits on your staff’s time. If you don’t operate productively and manage your finances, your business may fail. Use these tips to reduce costs and to manage finances.

Join our Business Achievers community and get access to downloads to help your business, free online training courses and network with members to help grow your business. 

1. Planning and monitoring your budget

Many entrepreneurs start selling their product or service without creating a budget. If you don’t take the time to plan your business operations, you may run short on cash or operate at a loss.

Think carefully about the costs you incur to make and deliver your product. Say, for example, that you manage a catering business. To serve your customers, you incur food costs, food preparation expenses and cost to deliver and serve the food. Invest the time to fully document the costs required to manage your business.

2. Using accounting software

Once you decide on a budget for your catering business, use accounting software to post all of your transactions. QuickBooks, for example, is an easy-to-use online accounting system. You can quickly learn how to post transactions and generate financial reports. A business owner can also input budget assumptions into QuickBooks.

At the end of each month, produce a set of financial reports, including a profit and loss statement for the month. Compare your budgeted sales and expenses to your actual results.

If actual costs are higher than you planned, think about making changes. Assume, for example, that your food costs were higher than budgeted. Consider ordering food from other vendors that can offer a lower price. Making these changes can help you keep your business on track.

Recommended reading: 

3. Take advantage of cloud computing

Cloud computing allows you to store and manage data on remote servers. You can sharply reduce the need for paper files using this technology. Businesses that use the cloud can operate more productively. Your staff can share documents, make changes and upload files by email. Cloud computing eliminates the need to email documents.

Another great tool for productivity is an e signature solution, you can send a document and get a signature electronically. Once the document is signed, you can backup the document and send it over the cloud. This tool helps you turnaround paperwork quickly. Employee agreements and project contracts can be processed in less time.

4. Increase productivity with mobile apps

Many business owners spend most of their time away from the office. The catering owner, for example, may be out marketing the business or meeting with clients. If you’re frequently out of the office, it’s important that you stay on top of your finances.

Consider using mobile apps to help you manage your business. You can find apps to scan receipts and post them to your accounting records. You can also connect you mobile device to your cloud computing system. This technology lets you access and change any document without the need to be in the office.

Recommended reading: 

Managing your small business can be time-consuming. Create a budget for your business and compare your budget to actual results. Use technology to keep your accounting records up to date. These simple strategies can help you grow your small business and generate a profit.

Related Posts



No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Sunday, 08 December 2019
If you'd like to register, please fill in the username, password and name fields.

Member Login

Business Insights & Tips


Jill Holtz
2343 Points
Tena Glaser
1395 Points
Michael Lane
802 Points
Ron Immink
732 Points
Fionan Murray
721 Points
View Leaderboard