There’s no need to get in a flap about your finances when it comes to setting up and running your own business. There is lots of financial help and advice available to small businesses whether it’s from your lender, the HMRC or you employ a business accountant.
We’ve selected some top tips from business owners we know that will stand you in good stead on your business planning journey:
1. Keep it separate
Separating your personal expenses and your business expenses will help when it comes to calculating tax. We’d recommend opening a business bank account to help build your business credit score and keep on top of financial admin a little easier.
2. Don’t forget to pay yourself
You can start off by paying yourself a small salary while you are growing the business, but paying yourself a wage will test the profitability of your business, plus you deserve something for all the time and effort you’re putting in to getting this off the ground!
3. Get the right insurance
This can easily be overlooked when starting a new business but it’s important that you take our appropriate cover for both personal and business assets. It protects the long-term viability and income of the business and plan for worst case scenarios that you may not have considered.
4. Consider where you invest
Many small businesses invest their assets back into the business, this can increase the risk level and business owners should consider potentially investing outside of their industry in order to spread that level of risk.
5. Appropriate future planning
It’s important to track business expenses, an accountant can help you with this sort of thing. Ensuring your business is financially viable and able to generate revenue to cover these expenses is essential to business success.
Activ Digital is here to support these financial conundrums with our finance support package, click here for more information.