Financial spring cleaning tips for your business
You may be gearing up to reopen your small business amidst the uncertain times COVID-19 produced. Nonetheless, as things return to a “new normal,” it’s a great time to take a moment or two to organize your business finances and ensure you’ll stay efficient after reopening. From combing through your budget to reevaluating some of your bigger expenses and managing your finances digitally, any level of financial organization can help you in the long run.
As you know by now, the health of your business solely relies on the health of your finances. If you don’t have the monetary backing, you can’t grow your offering or expand your customer base. Therefore, it’s important for your business’s future that you find ways to manage the chaos of your finances to get on top of debt, build your credit, and maintain your various payments.
Tip: Go digital
If you haven’t already, consider transitioning to a digital business banking account to help keep finances streamlined in a user-friendly mobile app. With your finances all in an easy-to-access platform and organized in specific categories from tax accounts to cash flow reporting, you can really understand where you stand financially. This will help you plan out short and long term financial goals for your business so that it can grow and develop as much as you’d like.
Revisit Your Budget
Budgeting your finances can help you plan for busy stretches of the year as well as leaner months during your non-traditional season. Spending less and saving more doesn’t have to be a negative, however. Look at your budget as a way to accomplish your goals, or spend on more reasonable, productive assets, such as an intern for the summer, or part-time workers when business picks up. A few necessary items will be worked into your monthly budget, like rent and utilities, and any subscriptions you may have to keep your business moving, but don’t be afraid to use any remaining budgetary room to achieve your business needs and goals.
Tip: Use budget apps
If you’re handling a big budget, or always like a visual representation of your month ahead, using a budgeting app can help you manage those numbers easily. While an app is helpful, working with your team to go over your budget will help everyone get on the same page and agree on different aspects of the business where budget should be allocated.
If COVID-19 has taught us anything, it’s that we can still operate without lavish expenses. The same goes for your business. Expensive travel, fancy client lunches, or high ticket gifts, while at the time can be fun, can be avoided, and will save you time and money down the road for items that are more essential to your goals. The better you’re able to cut unnecessary expenses, the quicker you will be able to meet your budgeting goals.
Tip: Utilize free tools
Social media instead of big marketing budget, video conferencing for client visits, etc.
Spring can be a great time to look at your business finances and put processes into place that will help you down the road. Organizing your finances digitally can save you time and money, budgeting will allow you to enter each month with a plan, and cutting expenses can help you stay on track toward your goals and always have some money for emergency situations.
There are dozens of other ways to spring clean your business finances, but use these three tips as a starting block to think of other ways to save money, run more productively, and set your business up for success the rest of the year.