Top Ways to Manage a Small Business’s Finance

by Luca Yates

All products and services featured on this site are independently selected by our authors and editors. If you buy something through links on our site, we may earn an affiliate commission.

Running a business of any size is not easy. It takes a lot of time, patience, and you have to be willing to make tough decisions. Managing the finances of a business is another story altogether. Even the smallest oversights can have the biggest implications if the finances are not managed successfully.

There are a lot of factors to keep in mind when working with financial management or planning the budget for a small business. So, be sure to keep these common tips in mind for the New Year and you can avoid financial stress. 

Don’t Pay Off Large Debt

Debt can be a good thing or it can have negative implications. For small businesses that are still growing, paying off debt too quickly can do more harm than good. Where you may be freeing the business up from financial strain over the long term, you also risk losing cash flow when the business needs it the most.

There are benefits to paying debt off earlier than the agreement states; however, a debt like this is also good for credit ratings. Businesses must have some form of financial obligation to be eligible for more loans or investment opportunities in the future.

Automate as Much as Possible

When it comes to the finer details of finance management, manually working with figures is often advised instead of automating. For other aspects like tax submissions, employee payroll, and supplier payments, these processes can be automated to a large extent. With the right accounting software, annual tax returns and financial processes can be set up for specific periods of the year. You can also create notifications to alert you anytime something needs to be completed.

One area that can be fully automated each year is employee salaries and benefits. Salaries don’t change throughout the year, only when there is a wage increase. This means that if businesses have all the payroll information captured, they can set up a system where employees are paid automatically each week or month. To know more about faster payroll payments, PayCaptain has all of the information. The systems available with PayCaptain allow financial managers to focus on the more important aspects of the department, while bank accounts and automatic payments are managed internally. 

Split Assets Among Financial Institutions

Just as splitting your investments into more than one stock, policy, or shareholder is wise, the same can be said for business. Although you may have a personal preference over which bank to use, you don’t want to put everything into one place.

Diversify the financial portfolio a bit by taking out business loans from different lenders. All banks have benefits and advantages that others do not. The trick is to research which institution will build your assets the most. If you want to invest in the business’s future, take out policies from more than one institution. 

Managing a small business’s finance is only complicated if you don’t follow a few simple rules. There are many ways to improve a financial system, yet these few will help get you started.

Top Ways to Manage a Small Business’s Finance

About the Author 

Luca Yates

Through his work in the SEO and Corporate landscapes, Luca Yates has been on his own personal growth journey. Today, he loves helping others to achieve their goals.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}

You probably have run into an ad like this: “I made six figures running my own business, click here to learn how

Read More
Revenue vs Net Income: What Most Coaches Won’t Tell You About Running Your Own Business

Did you know that Coca Cola spent $74 on advertising and only made $50 in sales their first year?[1] Adjusted for inflation,

Read More
Even Coca-Cola Lost Money the First Year. Don’t Give Up!

Our book of the month is Balance: Creating a Well-Balanced Vision for Your Life. Have you ever found yourself working so hard

Read More
Book of the Month – Balance: Creating a Well Balanced Vision for Your Life

Warren Buffett, one of the richest men in the world, a household name on Wall Street, had this to say about the

Read More
Warren Buffett Reveals the Best Investment You Can Make

The other day, I decided to clean up my Twitter feed. Unfortunately, I may have inadvertently cleaned up things a bit too

Read More
How I Lost Over 1,300 Twitter Followers Overnight

Congratulations, you have decided to open the next location for your business! Whether this is the second store or the latest addition

Read More
Opening a New Location – Top Tips for Business Owners

Recruitment has moved online. With a whole host of online platforms and social media channels to choose from, posting an available job

Read More
Top 5 Online Recruitment Mistakes To Avoid

In these modern times, videos are one of the most important tools you need for global growth of your business. More than

Read More
Want to Build Your Brand? Try These Videos Without Fail!

I may be seen as a bit of a trouble maker. I agree with an unconventional line of thinking. My views on

Read More
Do You Disrupt or Fit In?

I've read thousands, if not tens of thousands of books over the years. I am the owner and CEO of a multi-million

Read More
Will Reading Books Make Me Successful?

When I took the One Funnel Away Challenge, one of the things they reminded me was the importance of adding value rather

Read More
Stop Lowering Your Rates. Start Adding Value.

Part of being a coach is continually working to improve our own skills. Some time ago, I was invited to try out

Read More
Becoming an Achology Certified NLP Practitioner


Get new articles and course discounts from leading providers every Friday in your inbox with your free subscription!