5 Financial Tips for Small Business Owners

Small business owners especially starters finds it hard to survive in a highly competitive climate. Here are some tips to guide them to succeed from Melbourne Accountant:

Budget Your Spending

There is a need to know how much money is needed to break even and how much to spend to run the business on a day to day basis. Separate your income into categories:

  •   prospective income
  •   fixed expenses
  •   variable expenses
  •   pay cheque allowance

Identify what is a necessary expense as what you want. Wants are limitless.

Don’t Spend, Invest

Items that will give you long-term benefits will be a priority in spending hard-earned money. Always balance the cost against the benefits. See also that your expense will help in increasing the business or the quality of your endeavor.

  • Maintain records. All your receipts should be properly filed in a safe place that is easier to locate during times they are needed.
  • Separate your personal and business bank accounts.

All business expenditures must come from an account allocated for it. A credit card with a fix limit can be used for your business expenditures. Personal cash reserves should never be used to fund your business expenses so that available funds is still available for living expenses. Never also, utilized your business funds for your personal expenses.

Be Lean

There are two types of business cost, the variable cost and the fixed cost. Fixed cost whether there is money/income or not, have to be paid.

Scout for free and open source software and try looking for free online phone number. Skype meetings to save on travel. And even if you go lean, do not sacrifice the satisfaction of your clients.

To seek expert advice on starting and managing a business, seek the advice of Melbourne Accountant.



Leave a Reply