Running a successful business involves juggling multiple balls, including keeping a firm grip on your finances. Taking control of your money as a business owner is essential for boosting profits and reducing risks. In this guide, we’ll outline some effective steps to make money management a breeze. 

Embrace budgeting

Budgeting is one of the easiest ways to maintain control of your finances, inform decision-making and regulate spending. There are several ways to budget, from old-fashioned methods to using cutting-edge budgeting apps. Your budget should cover your income, regular outgoings and one-off costs. You can use it to calculate your disposable income, decide how to allocate funds, establish limits and identify expenses you can cut out or reduce. Your budget will also give you an accurate idea of how well your business is performing, show you where your money goes and help you decide how to spend funds. 

To budget effectively, it’s crucial to use accurate data and adapt your budget during the month or quarter. If you spend more than anticipated at the start of the month, for example, you’ll need to tweak your budget to prevent overspending and cash flow issues. 

Simplify expenses management

Keeping track of expenses can be challenging for businesses, especially those that have large numbers of employees, different departments and costs related to travel. Simplifying expenses management is a brilliant way to save time and energy and monitor outgoings. Solutions like fuel cards for corporations are an excellent example. If you have company cards for fuel, you can track spending, set caps and pay bills with minimal effort all while eliminating the need to process individual claims every week or month. There are also significant benefits for employees, who don’t have to worry about paying money, saving receipts and invoices and submitting them by a deadline. The entire process is streamlined and efficient. Search for tools and solutions that are relevant to your business. From retail and hospitality to marketing and real estate, you can use software and tools to track expenses and financial products to save time on paying bills and managing costs. 

Review spending frequently

Managing a business budget is often more difficult than a personal one, as there are usually many more outgoings and income streams. It’s beneficial to review spending frequently to ensure you have an accurate idea of how much you spend in an average month and where your income goes. In the age of one-click orders, contactless payments and subscription services, it can be tough to keep track. Online banking, expense-tracking software and accounting apps and programs make evaluating spending easy. Check your card balances regularly and audit your accounts. 

One major advantage of regular reviews is reducing expenses. If you’re paying for services or subscriptions you don’t use, or you’re spending more than you thought on specific supplies or bills, you can use this information to identify ways to save. Examples include comparing prices and offers, shopping around for the best deals, taking advantage of loyalty rewards and incentives, and canceling contracts for services or subscriptions you don’t need. You can also set limits within your budget to control spending from one month to the next.

Seek expert advice

If you don’t have a background in accounting, you’re a new business owner or you’re short on time, managing business finances can be challenging. The good news is that help is available. From charities and free workshops, guides and resources for entrepreneurs to consultations with financial advisers and business finance gurus, there are options to suit everyone. Seeking expert advice can provide clarity and answers if you have questions or queries and it can also save time and prevent stress. From taxes and payroll to lowering employee expenses and tackling debts, you can get help with every aspect of money management. 

Consider outsourcing or hiring

Assuming responsibility for your business finances is a significant step. Accounting can be time-consuming and it’s often complex if you don’t have a background in finance. If you have a packed schedule, your skills are more suited to other tasks, or you’re finding some jobs too complicated, consider outsourcing or hiring. Hiring involves employing people either on a part or full-time basis on temporary or permanent contracts. Outsourcing means working with external agencies or individuals, for example, freelance accountants or bookkeepers. 

If you’re thinking about employing new team members or outsourcing, it’s wise to weigh up the pros and cons of each option. What works for one business may not be the best solution for another. Assess your needs, calculate short and long-term costs and potential cost savings, and consider your preferences as the business owner. Hiring allows you to keep everything in-house, but outsourcing gives you flexibility and immediate access to skills and services and it can be cost-effective. 

Maximize profit margins

We often think of driving sales when talking about maximizing profit margins, but monitoring spending is another key component. If your income increases but your outgoings rise by the same amount, your profit margin won’t get any bigger. Aim to boost your income and lower spending. You can do this by investing in effective, targeted marketing campaigns, using analytics to improve sales and marketing strategies and solve problems and pain points, and implementing cost-saving measures. Examples include reducing employee expenses, saving money by shopping around and exploring different staffing structures or working models. If you don’t need a permanent business base, for example, hiring offices on-demand and hot-desking could save you a huge amount of money if you currently lease commercial office space. 

Business owners take on a diverse range of jobs. One of the most difficult is managing money. If you run a company, or you’re in the process of launching a start-up, it’s beneficial to implement strategies to take control of your finances and lower risks. Key areas to focus on include budgeting and forward-planning, simplifying expenses management and reviewing spending. It’s also wise to seek expert advice, consider hiring or outsourcing if you don’t have the time or experience or skills to manage accounting tasks, and be proactive in maximizing profit margins.