Money management isn't the same from one person to the next. It requires different steps, tricks and tools, and making the switch from a personal mindset to a professional one could get a little tricky.
Most importantly, a new small business owner should be aware of the necessary shifts, from keeping track of their own books to taking control of their venture's. These two tasks aren't the same, and thinking they are could be a dangerous path to go down. In fact, many entrepreneurs make assumptions going into the process, even though managing money and a financial plan are never as easy as they look.
With that in mind, here are a few simple steps to help take control of the process, and avoid any unneeded problems in the future:
Change the perception of money management
Taking control of a business' finances is a complicated, in-depth process. It is different than working under someone else, and it requires a more comprehensive outlook and an increased emphasis on some of the other metrics out there.
According to the Intuit Small Business Blog, small business owners shouldn't be afraid of the idea of "debt." On a personal level, paying off bills early and avoiding debt is extremely important. But, this idea could change for a new venture. For example, borrowing is a key way to grow, and opening business credit cards can help get the startup off the ground. However, the minimum balance on these should always be paid on time.
Take advantage of new tech trends
In addition to a new outlook on money management and a financial plan, small business owners will want to take advantage of new technological tools and resources that are available. These can make bookkeeping and other crucial tasks much easier.
For instance, Entrepreneur magazine recommended Google Drive as one tool to get started. This is a cloud-based document sharing system, and it allows users to upload all sorts of files from one location and access them at another. As a result, companies can share vital pieces of information quickly and conveniently. Another ideal resource is Xero. This online tool is for bookkeeping, and lets people track cash flow, bank accounts, invoices and other bits of data. So, at the end of the day, it is much easier to access all that critical information for filing taxes and paying other expenses throughout the year.