You’ve heard of the term ‘money talks’, in that having a proper cash flow enables you to have a ‘voice’ and make an impact in your everyday dealings. However, it can work the other way around too. If you’re not privy to the language of money, then you’re more likely to find yourself stumped.

Read on to find out how to avoid any loss in translation and in turn move further in your business!

When starting out as a small business owner, you’ll quickly find that money really does make the world go round. Or, at least, it keeps your world of business afloat.

With finances being an inescapable part of running your business, it’s crucial that you get a hold of the literacy required to maintain a sustainable cash flow throughout your endeavours. This would involve bookkeeping, accounting, and budgeting with a keen eye in separating the essential from the extraneous.

Here are a few further pointers to consider so that you can keep up with the money conversation.

1. Always keep expenses in check

It goes without saying that to stay in touch with finances, you’ll have to always be aware of any amount coming in and going out. Any expenditure that reduces your account takes you further from profits, so be sure to keep a close eye on where your hard-earned money goes.

Every expense should be justifiable when it comes to the value that you get in return. For example, hiring new talent will bear extra cost to your bottom line, but if the employees you engage will accomplish more and expand opportunities for added income, then by all means that would be a worthy investment to validate the amount you put in.

Aside from benefits, even potential losses should be documented so that you can prepare for any next steps.

Pro tip: Get the best in streamlined and on-the-go accounting with Financio, available exclusively for Unifi Business Club (UBC) members!

2. Automation goes a long way in handling the day-to-day

Both dime and time go into making a business run smoothly, with the daily routines of handling expenses taking up a fair amount of your business hours. That’s why it’s good practice to have systems in place that can automate the day-to-day processes that involve bookkeeping and accounting.

Having an automated system that can centralise all your documenting and tabulation will take out the hassle from the repetitive chore of manually inputting everything. Automation can also help in keeping track of your invoices as well as making sure your employees are paid on time. 

3. Categorise expenses and be vigilant in separating personal and professional finances

In addition to keeping expenses in check, it’s also crucial to categorise each one into buckets that you can then refer to conveniently. For instance, you might want to clearly label possible future expenditure, as well as purchases that qualify for tax write-offs.

With the intensity of accounting that is required, it’s also advisable to make sure that your personal and business finances are kept separate. By having a separate business bank account, you’ll have more clarity in determining the cash flow of your business, without any mix-ups (or even worse, mess-ups) from crossing business expenditures with your own personal finances. 

Of course, making a profit is always crucial to a business, but even more important is how you keep tabs of those returns. With these few tips in mind, you’re now ready to unlock entrepreneurial success! 

Before you go, do check out the variety of solutions on offer at UBC. Fully utilise these for added leverage in fulfilling all your business needs.