If you are starting out in the furniture business or been in business for a while, one of the most important things you can do as a business owner is to pay attention to money management. If you want your business success to turn into personal financial success, you need to be aware of what is going on with your money. Here are 5 helpful money tips for business's.
1. Separate Business and Personal Accounts
Keep your business finances separate to your personal finances. Does your business have its own bank accounts? If not you should use different accounts with their own credit cards. Keeping your personal finances separated from your business finances will help you manage both more effectively.
2. Set Up Regular Invoicing Policies
One of the best things you can do as a business owner is to set up regular invoicing policies. Look for the right invoicing tool, the AFA uses Xero. Make sure you invoice and pay on time, and do so accurately. You want your clients and customers to pay as quickly as possible, and your invoicing policies can make a big difference.
3. Get Proper Insurance Coverage
This is a great tip and one that is often overlooked. Insurance cover is important to protect your business and finances especially in the case of unforeseen complications. Look at liability and/or property insurance which protects your business assets as well as your personal assets. As an AFA Member you may even want to consider your IP, we work with companies that can help you with this. Other types of insurance are important too like income protection insurance or life insurance if things go wrong on a personal level. Have a think about any claims that could be made against your business, and get the right coverage. AB Phillips are the AFA's preferred supplier of Insurance & Risk Solutions. To find out more visit http://australianfurniture.org.au/afa-services/insurance/
4. Consider an Accountant and/or Lawyer
You might want to do everything on your own as a business owner, however, the reality is you may need professional advice. The right help can save you money in the long run. This can also free you up to focus more on growing your business and increasing its profitability. AFA partner accountants Hansens and legal partners Aitken can assist with the accounting and legal side of your business ensuring that you follow the correct payroll and tax practices amongst a range of other services. The right lawyer can be vital, particularly if they are focused on small business concerns. You may also consider a bookkeeper or getting good bookkeeping software (like Xero) to help you keep track of incomings, outgoings gst, payg etc.
5. Keep Good Records
Keep receipts, and make notes of what was discussed at business meetings. Don’t forget to have your employees keep good records too. Require them to submit travel receipts for reimbursement. Even your petty cash should be subject to good record keeping. Have a record book and issue receipts for petty cash expenses. Good records can help you at tax time, and save you time and money!