3 Ways to Stay on Top of Finances When Scaling Your Business
If you thought that starting a business was a challenge, wait until it’s time to grow your business. Not only do you have to be concerned about making sure your business is scaling at the right pace, you also have to stay-on-top of tasks like networking, marketing, and bookkeeping. Not to overwhelm, but that’s a full-plate.
Out of all of your growing responsibilities though, staying on-top of your finances is arguably the most important. It prevents you from overspending and ensures that you’re making sound financial decisions that will help you succeed for the long-term.
But, how do you stay on top of your finances as your business continues to grow? Here are three of the best ways to do so.
Switch to the cloud
Today there are hundreds of cloud-based systems that allow you to handle all of your bookkeeping, accounting, invoicing, and payroll needs. Take Flint, for example. You can use it to send invoices electronically and receive payments. It also sends automated payment reminders and allows you to set-up recurring billing. This not only keeps the cash flowing into your business, it frees you from having to manually create and send invoices, as well as following up with unpaid invoices.
Additionally, cloud-based tools give you the chance to access real-time insights, and they can be accessed from your mobile devices so that you can keep an eye on your finances anywhere at any time.
Since there are hundreds of options of out there, I would suggest giving several tools a try before committing to a service. They all have different features based on the size and specific needs of your business. By taking advantage of the free trial that many offer, you can find the right tool for your business.
Create and stick to a budget
Budgets are often considered dull and tedious, but they’re absolutely necessary if you want to stay on top of your finances and grow your business properly.
With that in mind let’s get this out of the way. A budget is not a tool for planning how you’re going to spend every penny. It’s actually the foundation that you’ll use to help make well-informed spending decisions. Budgets can be used for anything ranging from how much you can spend on a new marketing campaign, if you can hire new employees, or what costs you’ll need to cut in order to keep your profits on track.
When creating your business, you’ll need a limit on how much you’re willing to spend and to know what your priorities are. This keeps your spending in check because and scale steadily. Why invest in the pricey marketing campaign if it’s not going to bring-in additional revenue?
There will come a point when can’t handle all of the the tasks involved with running a business. Instead of hiring a new employee, give outsourcing a try.
With outsourcing you can expand your business’ capacity without having to find a larger office space, hire staff, or invest in more equipment. For most business owners the first task that they’ll outsource is is accounting and bookkeeping.
While it’s no secret that keeping tabs of your small business finances is essential for the success and growth of your business, it’s not sexy and is very time-consuming. And, most business owners aren’t familiar with tasks like creating budgets, managing cash flow, handling payroll, and preparing tax returns. Thankfully, you can outsource these task without having to worry about insurance, benefits, and payroll taxes – even if you’re on a tight budget.
Most importantly, outsourcing all of your finances not only saves you time and money, it gives you peace of mind in knowing that an expert is handing these functions so there won’t be any legal consequences, like getting audited or penalized by the IRS.
This blog comes as a guest post from John Rampton, CEO of Due.com. John Rampton is an entrepreneur, investor, online marketing guru, and startup enthusiast. He is the founder of the online payments company Due. Follow John on Twitter at @johnrampton.