Starting a new business is very exciting – it is an effort filled with great potential, endless possibilities and unavoidable challenges to be met and conquered. One of the greatest of such challenges is financial management for startups. With the right financial strategies in place, a new business will grow and prosper – without one, the business is sure to struggle.
It is wise for any entrepreneur to learn as much as possible about running a new business, with a strong emphasis on studying and understanding the financials. Here are our tips to help any startup business owner on the road to sound financial management.
Taggart & Partners are experts in SME accounting, helping new businesses to reach their full potential. Contact us today to learn more about how our services can be of assistance as your firm develops. Call us on 07 3391 1188 or fill out our online form.
Our Tips for Financial Management for Startups
Make a Business Plan
Every great human endeavour has started with a solid plan – this holds true for startup businesses. A well thought out business plan will act as a roadmap to guide your business through rapid growth and inevitable change. An important part of any business plan is the financial planning that convers projected revenues and expenses. This information is invaluable for the measurement of progress of your business, as well as for making future investments.
Create a Budget and Stick to It
Good financial health for a business begins with a comprehensive budget – and a business owner that sticks to that budget. It provides a clear picture of you’re the business’s financial situation and encourages responsible spending. A budget is a powerful tool that allows for making informed financial decisions, but it only works if you avoid deviation from the budget you created.
Stay On Top of Cash Flow
It has been said that businesses live and die based on cash flow. This truth applies to startups much more than to well establish companies – a startup will not have developed the financial reserves or safety nets that an older company will have. A new company needs a robust system in place to regularly monitor cash flows to make sure they can meet the financial needs of day-to-day operations and be prepared for any unexpected expenses. There are many software packages available that can help, but none of them are on the same level as working with a firm the specialises in business advisory services and accounting.
Plan For and Pay Your Taxes
This might seem obvious, but you’d be surprised by the number of startups that try to get away with short-changing the tax authorities. The temptation for modifying the books can be strong, but it’s not worth the risk of penalties and potential criminal charges for doing so. Another aspect of this tip is to set aside money to use for tax payments. It’s important to be prepared for tax time and a big part of financial management for a startup is saving money to pay the ATO.
Invest in a Quality Accounting Service
It’s easy to research and read about financial management for startups, but it can be quite difficult to put those suggestions into action – this is especially true when you are actively involved in the everyday running of a new business. This is where getting help from a quality accountant can aid in ensuring compliance and accuracy in your financial records. A professional can also provide insight on financial planning and money management that you might not be aware of. This kind of professional assistance can go far in helping you to establish a strong foundation for your business to grow on.
Taggart & Partners Will Help
Good financial management for startups provides a clear picture of your business’s financial situation and empowers you to make informed decisions that are of the greatest direct benefit to the prosperity of your enterprise. This all begins with a phone call to the experts at Taggart & Partners. Engaging with us is an excellent first step in securing the success of your business. Start by calling us today on 07 3391 1188 or by filling out the online form.