Do you have a startup business? Have you been wondering how you can stay on top of your finances?
If yes, then ride with us on this informative journey as we give you tips on how to manage and maintain a good finance for your start up business.
Before we move on, lets debunk the thought of “i just want this business to make money that can sustain me especially during this period”.
A lot of startups business sprung up amidst COVID-19, staying in business is hinged on how well you manage your finances. As a startup business , there are some do’s and don’t when it comes to finance.
Have a Budget
Budgeting cannot be over-emphasized for any organisation including startups, this is simply normal calculations of addition and subtraction.
Calculate your estimated expenses and subtract them from your estimated income. This way you would be able to know the financial status of your
startup business and make guided steps that are beneficial to your business.
As a startup business owner you must be accountable. i am sure you’re wondering how?.
This might be a bit technical, and if your start up budget can accommodate employing an expert to handle this do so!.
If your startup cannot afford to employ an accountant for now, don’t worry, you can have a hang of it, there are simple accounting software that can help you in the whole process of managing and documenting your cash flow like QuickBooks, Sage 50, Kashoo, Xero.
I am sure you want your business to grow, so you need to have a financial projection for your startup business.
All you need to do is use your current budget and estimated sales projection for your business, for a forecast period of 3 years for example, this would give you an estimated financial projection for startup business and also guide you on the steps to take to achieve the projection.
I am sure you don’t want to violate tax, so it is an integral part of your finance, always make correct calculations of your tax, you can get a professional to manage your business tax account and avoid violation, to prevent penalties from the government.
Don’t go yet, we have a free “straight from the heart” tip for you
Keep yourself on a salary, yes! even you the CEO. Avoid a flamboyant lifestyle that does not match your current financial capabilities, so you would not have to keep going back into your startup business capital to fund your lifestyle.