Running a business means paying close attention to your financial situation. Without a sound knowledge of your finances, you could easily end up wasting money. To help you grow and improve your future, consider these eight ideas to boost your business finances.
1. Budgeting & forecasting
If you’d like to improve your business finances, you should focus on budgeting and forecasting. Every business needs a strict budget, and it’s essential to understand your outgoings, profits, and where you might be able to save money. Creating a clear budget helps you to make sense of your finances and set financial goals.
Forecasting can help businesses to make key decisions using data. The idea is to make financial decisions depending on future predictions and market conditions. Forecasting has many benefits for businesses, including:
- Supports companies to create measurable goals and make plans.
- Can anticipate potential market changes.
- Helps businesses to devise a workable budget.
- Put data into action, to make the best financial moves.
2. Accounting support
To manage your business finances, you’ll need accounting support. For example, you might make use of accounting software. The software usually includes invoicing, payroll, expense tracking, balance sheets, and tax compliance. Some of the top accounting software solutions for businesses include Zoho Books, Freshbooks, QuickBooks, and Wave. Some businesses prefer to hire an accountant to support these processes. If you don’t feel confident using accounting software yourself, this could be a better option. Either way, it’s best to get some form of accounting support, to stay on top of your finances.
3. Invest your money
Looking to grow your profits further? Why not consider a few investment opportunities. There are so many different ways to invest, including:
- Forex trading
- Money markets
- Stocks & shares
- Real estate
- P2P lending
Before approaching any investment, it’s best to do your research. The more knowledge you have, the easier it is to make significant investment decisions.
4. Ensure compliance
Improving your finances isn’t just about managing your money. Businesses need to comply with various laws and regulations to avoid fines. You’ll need to choose a legal structure for your business and understand the regulations involved. It’s also essential to keep your accounts up to date and comply with tax regulations. If your business trades overseas, you’ll need to work with certified customs brokers. These brokers can help you to comply with customs regulations and avoid penalties.
5. Reduce expenses
Reducing expenses is a great way to improve your cash flow and boost your profits. There are many ways that you can look to saving your business money, including:
- Do your marketing, whether writing your blogs or crafting social media content.
- Embrace remote work life as opposed to using a dedicated office space/premises.
- Negotiate with your suppliers.
- Switch to green energy.
- Go digital & eliminate the need for paper/printers.
6. Apply for grants
Many organizations provide grants for small businesses or start-ups. Here are a few options you may wish to look into:
Visa Everywhere Initiative: Every year, the Visa Everywhere Initiative rewards ambitious businesses with funding opportunities. If you’re doing innovative work and stand out in your sector, it’s definitely worth applying.
Patagonia Corporate Grant Program: The lucky winners of this grant can receive between $10,000 and $20,000 in funding. Patagonia is particularly interested in companies that help the environment.
7. Set goals
To improve your business finances, it can be helpful to set financial goals. For example, your goals might be saving money, boosting profits, or improving your budgeting. Whatever your goals are, it can be useful to use the SMART Framework. Once you’ve figured out your goals you can focus on how you’re going to achieve them. For example, if you’d like to boost your profits, you might think about:
- Improving your products and services.
- Enhancing your marketing strategy.
- Expanding into international markets.
- Adjusting your pricing strategies.
8. Get financial support
It can be useful to work with a financial advisor, and these professionals can offer financial support and advice to help you reach your business goals. Financial advisors can help businesses in many different ways, including:
- Can help your business to manage finance and debt.
- Support you to make financial decisions for the future.
- Can offer advice about investment opportunities.
- Wealth management support.
Using these eight ideas, you’ll soon improve your business finances. There are many ways to level up your company finances and grow your business, from goal setting to accounting tools and forecasting.