Bills, Bills, Bills: Keeping Your Small Business Finances in Line

Your small business is about making money, but you still have to spend money to keep doing what you do. From product costs and payroll to overhead fees like electricity and running water, having and sticking to a budget needs to be a top priority.

Reign in your small business finances and keep your profits in your pocket by following these tips.

Budget for Incidentals

Most small business owners have at least a rudimentary budget, but to maximize your profits, you need to account for every last dime. You know to plan for rent, payroll and utilities – but what about incidentals like business lunches, marketing fees or snacks for the employee break room? Be sure you’re earmarking enough cash for your regular bills and a little extra for the “just in cases” that come up in the small business world.

Know Where Your Money Is Going

No one loves paying the monthly bills, but tracking your small business’ spending is a must. While accounting for each cent may seem daunting, there are plenty of programs out there to help you along.

Full-functionality programs, like QuickBooks Pro, allow you to download your credit card and bank statements, making it simple to know where your money goes. Not great with computers? Try an app instead. BizXpense Tracker for iPhone lets you track expenses, create custom categories and generate expense reports straight from your smartphone.

Trim the Excess Fat

Once you know where your small business’ cash is going each month, it’s easier to see where cuts can be made. Are you spending too much on entertaining and not enough on expanding your company? Is your Internet bill higher than it should be?

You should be on the lookout for ways to spend less, so you have more room in your budget for the things that really matter.

Your small business has to spend money to make money – but you need to be smart with the way you spend it. Take ownership of your budget! Make sure there’s enough room for incidentals and emergencies, know where the money is going and don’t let too much of it get away.

Mischa Communications can’t draw up your small business’ budget, but we can help you save on your marketing expenses! Drop us a line – it’s free!