Looking after your own finances is a nightmare at the best of times, money falling through your hands like so many grains of sand. Pay day comes around and you feel richer than Queen Elizabeth bathing in a sea of bank notes with her face on them.
But it only takes a few days until you’re looking more like Chaplin’s Tramp than even the lowest members of the monarchy. You’ll phone around your relatives and friends to borrow some cash, just enough to get you through the rest of the month, until you’re trapped in a spiral of debt that looks more intimidating than the swirly intro sequence in Doctor Who.
These are your personal finances and, provided you don’t start fooling around with credit cards and payday loans, it’s possible to make it through another fallow month with a little bit of skimping. But when it comes to your home business, these kind of errant financial strategies can get you into serious trouble.
Whether you’re opening a small-time Etsy account or heading a giant corporate empire, keeping your cash flow in order is vital. There are plenty of tales of entrepreneurs who made seemingly mad decisions, who pushed their company to its very limits in the name of becoming pioneering. But there are very few stories of business leaders who could barely comprehend a spreadsheet.
With that in mind, we’ve come up with a few starter tips to keep a tight leash on your finances. Take a look and make sure your business doesn’t slide into the red.
The payroll is king
One of the major obstacles that gets in the way of effective financial projections is poor documentation and planning. This is why a lot of companies hire a crack team to look after their payroll.
Only a decade or so ago, this was a process that required a lot more time and effort. Your team would have to rifle through mountains of paperwork, confer with tax offices, discuss details with employees, and scratch their heads as they stared at calculators.
In this digital age, managed payroll services have become a lot more convenient, leading many people to ditch their HR department and outsource to Cloud-based services. We’d strongly recommend this approach.
Keep staff numbers down
Your staff are, of course, vital to the effective running of your business – but they’re also the highest outgoing costs month-on-month. This doesn’t mean you’ve got to fire people willy-nilly, but it’s always a good idea to see how you can maximise your employee’s potential.
If you’ve got any more tips on how to cash-save in your business, let us know in the comments below!