When it comes to running your own business, of course you want to be as cost efficient as possible. But money management can be very difficult. So, here’s a few pointers to help business owners save some money.
Only Borrow What You Need
Most small business owners are concerned with a lack of cash flow. Although it is easy to get a loan from a bank or small business lender, borrowing so much may cost your business more than you realize. Manage your cash flow efficiently with billing processes and payment systems that accelerate accounts receivables and support consistent cash flow. For example, accepting mobile payments will allow you to process a customer’s credit and debit card securely from any location. Customers can also use this feature to pay online on your business’ website and this accommodates both you and the customer. You will pay some fees in order to maintain this payment processing technology, but it is much less than you would be paying in interest rates when borrowing money.
Save Tons with Online Invoicing
Online invoicing is not only less expensive than paper invoicing, but it is practical. It saves you time, money, and everything is easier to keep track of. With electronic invoices, you can track each clients billing experience, and whether or not they received your invoice and if they have opened it. Collecting payments from customers is 100 times easier this way.
Set the Tone for Payment Expectations
Give your customers clear guidelines about your billing policies in order to establish a cadence for accounts payable, accounts receivable and collections processes. Just let them know when payments are due, what forms of payment your business accepts, payment discounts, and late fees. Provide this with written documentation so there is no confusion.
Investing your Time in the Right Places
In every small business, you have many tasks that need to be handled, such as invoicing, bookkeeping, inventory, marketing, etc. Make sure you are analyzing these tasks and see if you can eliminate any third parties. For example, instead of hiring someone to solely do invoicing, use online invoicing because it’s more cost efficient. When outsourcing, make sure you are ensuring maximum return on investment.
Taxes
Taxes are a huge deal when owning a business. Open up a bank account solely to tax obligations and start saving. You can make this simple by calculating what you will owe each entity each quarter, starting at the beginning of the year. You will never have to worry about not having enough money or not paying on time.
We can’t promise you’ll be on the cover of Forbes next week, but by following these money management tips, you can definitely improve your business and save a few bucks while you’re at it.
