Small Business Start-Up Checklist – Managing Finances

The process of financial management is always important, but it is particularly so to a new start-up due to the unpredictability of the first year of business. It is essential for you to know at all times what amounts are coming in and going out of the company so that you do not overstretch your resources.  

Things to remember:  

  • Decide before you begin trading whether or not to manage your own financial records or whether to get someone else to do it for you. This could involve hiring someone part-time or out-sourcing parts of the process.
  • Bookkeeping is a necessary part of financial management. A bookkeeper will be responsible for day-to-day accounting operations such as recording transactions and entering them into the system.
  • Some accountants provide bookkeeping services, but their main function is to analyse the data in your system and offer expert advice that will save you money.
  • A financial plan and budget are an essential part of keeping track of finances. You also need to be able to produce a number of financial statements such the balance sheet and cashflow forecast.
  • Minimising risk is an important aspect of financial management. Insurance is needed on all aspects of your business – property, equipment, stock and employees.
  • Avoid cash shortages by keeping in close touch with your customers and offer them incentives for paying their invoices quickly.
  • Keeping your finances in order will make your business a more attractive proposition to investors and also to potential buyers.
  • The accounting module of OnlineOffice is excellent free software-as-a-service (SaaS) that will provide all the functionality you need to manage your finances. It can be accessed from anywhere in the world as long as you have an Internet connection.

For the previous stages of this checklist look here 

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