Many small businesses in a few years fold up due to mismanagement of funds, the owner of founder might have little knowledge about finance and can’t afford to get an accountant.

Many of them have challenges with the financial aspect of their business. Nevertheless, mistakes do happen, but it’s not the end. We make mistakes  to learn and not repeat it again.

To keep business moving, you need money to cover expenses. Let’s get to it;

1: Don’t mix your personal finance with business finance:

It is important you’ve a separate account for your business as it won’t lead to impulse spending or using the money for something else entirely and promising yourself you’ll return it,  but you don’t end up doing that. 

Resist the urge to join them together, or it’ll create a mess you might find it hard to clean up. Having a business builds credibility and may help in future when you need funds for your business.

2: Gain knowledge on accounting:

You don’t have to study it in a school, you can watch few videos on YouTube, sign up for a class.

Just get the basic knowledge pending the time you’re able to afford an accountant. The better you understand how finance works, the more you get to make smart decisions regards your business.

3: Choose how to keep your financial records:

How do you intend to keep the records of your finances? You can use applications online, you can decide to keep manually (paper records) Which ever you choose, make sure it’s safe and can be retrieved easily in case of unforeseen circumstances.

4: Track your finances often:

Schedule time to check your finances, when you set goals It’s important you take a break and check if you’re on the right path. It could be every end of the week, or every month end, whichever works for you. Choose a time suitable for you.

Finally, managing finance in small businesses is important, if funds are mismanaged it can be dangerous for the business. Keep these useful tips in mind before and after starting a small business.