50 Tips For Managing Small Business Finances

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Managing finances, is one of the key aspects of managing a business. Money is central to competing and surviving. Here are some tips to help you manage your business finances better.managing small business finances

  1. Always clear your expenses on time. Never let them pile up before you know its too late.
  2. Know the total and team wise salary cost and review the same every quarter.
  3. Invest surplus funds in short term securities or bonds.
  4. Know about your tax deductions and keep proper records to avail them.
  5. Do-not confuse office equipment with office supplies while calculating taxes. These should be counted as capital expenditure.
  6. Track employee expenditure on a regular basis.
  7. Define a credit period for clients to pay up and make sure it is adhered to.
  8. Always look for innovations to keep the cost of raw material in control.
  9. Keep internet and communication costs in control by reviewing the latest deals on a regular basis.
  10. Penalize clients for making late payments.
  11. Always use a clean mailing list for your email campaigns.
  12. Research and select the most cost effective online tools.
  13. Join an industry association and avail of bulk discounts on your purchases.
  14. If you bill for time, then make sure you are billing accurately and getting the right value for your services.
  15. Analyze expense reports on a weekly basis and keep them under control.
  16. Pay your vendors on time and avail discounts on your expenses.
  17. Always insist on cash payments from your clients.
  18. Save on promotional expenditures through promotional tie-ups.
  19. Define a time limit for internal office meetings.
  20. Hire more number of efficient junior level employees, to save on costs.
  21. Keep appropriate inventory levels for minimum investment in inventory.
  22. Use online invoice and estimate management for saving on paper costs.
  23. Go for shared work-spaces to save on rental costs.
  24. Get virtual assistants to help your clients understand your business.
  25. Keep a limit on electricity usage at work place.
  26. Track your bank loan interest and your credit card interest.
  27. Use cloud based solutions for CRM, client management and invoicing.
  28. Insist on getting paid online, to reduce operational costs of payments.
  29. Switch off vending machines and and other devices when not in use.
  30. Utilize office spaces efficiently for reduced office rental.
  31. Beware of any fines or penalties that your business might face.
  32. Optimize the time required for the completion of tasks and achievement of goals.
  33. Send account statements to clients on a regular basis along with payment requests
  34. Add a penalty for clients who pay late.
  35. Decide on the payment terms with each client.
  36. Train your sales team to achieve payment and cash flow targets.
  37. Allow discounts to clients who wish to pay early.
  38. Always keep surplus cash to be able to pay your expenses on time.
  39. Never take a negative cash flow lightly. Always look for problem areas and fix them immediately.
  40. Always go for bundled insurance to save on the cost of premium to be paid.
  41. Choose your business location wisely, to save on rental and property taxes.
  42. Optimize the level of business travel and client meetings.
  43. Go for used computers and furniture to save on these costs.
  44. Review maintenance and cleaning costs on a regular basis.
  45. Keep your business and personal finances separate.
  46. Maintain an expense policy for employees.
  47. Send accurate estimates to clients and train your employees for the same.
  48. Use recurring invoices for saving time and effort.
  49. Appoint a tax consultant to help with accurate tax planning.
  50. Use employee referrals to hire new people and save on cost of placement services.

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