How to deal with company finances as a new business Feb 22nd
Recent figures show that in the UK the number of people working for themselves accounts for more than four million people of the total number in work. Beginning a small business is something that more people than ever now see as an achievable aim. There are also many ways to help the process that didn’t exist before, ranging from the way technology has opened up world markets to even the smallest home traders and how new forms of funding offer new options for those looking to raise capital. It is easier these days to get recognised and raise your business. This is mostly through digital marketing where many business hire the services of sites like https://www.expedition.co/services/development/los-angeles to help them develop their branding, web design and development and marketing processes like SEO.
Backers and investors
Every new business needs financial backing, even if that comes out of a self-employed sole trader’s own pocket. Equipment, premises, marketing and day to day living costs all need to be factored into a start up business plan. Where this money comes from greatly depends on personal circumstances and exactly how much is needed.
Backers and investors can come in the form of family members, friends or co-owners of a new business. Old traditional models of lending such as high street banks still have their place, although eligibility criteria is higher since the banking crisis. Other avenues of raising funding such as investor angels and even online crowd-funding platforms add even more variety to the mix of options available.
Cash flow
Managing company finances can be daunting for some people who have little or no experience of running a business. Should things be paid for as you go along and as money comes in or should they a fund be set aside that can be used? How do business budgets differ from managing personal day-to-day living expenses and costs? Taking on a full time person to handle finances can be costly for a firm and an impossible for a sole trader or freelancing contractor. However, there are other ways of sharing the burden of looking after business finances. Simple things like finding a well-designed invoice template can make invoicing less of a chore and more of a quick and easy way to manage your income and outgoings. Things that save you time also save you money!
Actual cash
If you’re starting a business that requires your customers to hand over physical money in exchange for services or products, then it may be worth looking into investing in something like money counters. These can make the end of day banking so much easier as well as help to ensure that your reports are accurate, something that is incredibly important to businesses who are just starting out.
New solutions
Using contractor accountants isn’t a new idea, but it is easier than ever before. Essentially these are companies that look after the financial side of things on your behalf, with services that can range from issuing invoices, dealing with HMRC or even helping you to raise investment capital. These companies can really help ease the pressure on a new business in many ways, not least in giving the peace of mind that knowing your financial responsibilities are being handled professionally will bring.
The buck stops with you
One of the most important things to remember about starting your own business is that you are the boss and the buck stops with you. Although this gives you far more freedom that being in the employ of someone else, it also means far greater responsibilities across the board. Knowing that financial aspects of your business are in safe hands can give you the chance to get on with the work you’ve chosen to do and make success come all the quicker.
Feb 22nd
Recent figures show that in the UK the number of people working for themselves accounts for more than four million people of the total number in work. Beginning a small business is something that more people than ever now see as an achievable aim. There are also many ways to help the process that didn’t exist before, ranging from the way technology has opened up world markets to even the smallest home traders and how new forms of funding offer new options for those looking to raise capital. It is easier these days to get recognised and raise your business. This is mostly through digital marketing where many business hire the services of sites like https://www.expedition.co/services/development/los-angeles to help them develop their branding, web design and development and marketing processes like SEO.
Backers and investors
Every new business needs financial backing, even if that comes out of a self-employed sole trader’s own pocket. Equipment, premises, marketing and day to day living costs all need to be factored into a start up business plan. Where this money comes from greatly depends on personal circumstances and exactly how much is needed.
Backers and investors can come in the form of family members, friends or co-owners of a new business. Old traditional models of lending such as high street banks still have their place, although eligibility criteria is higher since the banking crisis. Other avenues of raising funding such as investor angels and even online crowd-funding platforms add even more variety to the mix of options available.
Cash flow
Managing company finances can be daunting for some people who have little or no experience of running a business. Should things be paid for as you go along and as money comes in or should they a fund be set aside that can be used? How do business budgets differ from managing personal day-to-day living expenses and costs? Taking on a full time person to handle finances can be costly for a firm and an impossible for a sole trader or freelancing contractor. However, there are other ways of sharing the burden of looking after business finances. Simple things like finding a well-designed invoice template can make invoicing less of a chore and more of a quick and easy way to manage your income and outgoings. Things that save you time also save you money!
Actual cash
If you’re starting a business that requires your customers to hand over physical money in exchange for services or products, then it may be worth looking into investing in something like money counters. These can make the end of day banking so much easier as well as help to ensure that your reports are accurate, something that is incredibly important to businesses who are just starting out.
New solutions
Using contractor accountants isn’t a new idea, but it is easier than ever before. Essentially these are companies that look after the financial side of things on your behalf, with services that can range from issuing invoices, dealing with HMRC or even helping you to raise investment capital. These companies can really help ease the pressure on a new business in many ways, not least in giving the peace of mind that knowing your financial responsibilities are being handled professionally will bring.
The buck stops with you
One of the most important things to remember about starting your own business is that you are the boss and the buck stops with you. Although this gives you far more freedom that being in the employ of someone else, it also means far greater responsibilities across the board. Knowing that financial aspects of your business are in safe hands can give you the chance to get on with the work you’ve chosen to do and make success come all the quicker.
Join us on Facebook
