Working from home has become the norm over the past few months because of the coronavirus pandemic. But for small business owners, managing business finances from home might not be a new venture.
As many small business owners start operating from their homes, it might be difficult to put your foot down on how to manage business processes. One of the top concerns new business owners have is how to manage business finances from home.
Being a new business owner can be confusing and overwhelming. However, rest assured that you aren’t the first person to be experiencing these troubles. To help you get started, we’ve come up with a few tips on how to manage your business finances from home.
5 ways to manage business finances from home for a new business owner
1. Don’t mix business and personal finance
If you’re operating from home, you’re most likely already treading the line between business and personal space.
Confusing business and personal financial transactions can really mess up your business processes. Which is why we recommend separating business and personal finance. There are several steps to do this, but the two most important are:
- Choosing a business bank account
- Getting a business credit or debit card
Having a separate bank account for your business makes it way easier to track company related expenses. This way, you’ll also have a clearer idea of your revenue. Nowadays, business bank accounts come with an integrated accounting network that could help you track your expenses.
2. Come up with good payment strategies
E-commerce businesses are a dime a dozen in Singapore. While there are many new online businesses joining the community, there are several unanswered questions new owners commonly ask.
One of the most common questions when it comes to running a business is what payment methods to include on a site.
Well, having a variety of online payment options can help you to boost e-commerce sales, and also encourage customers retention. Take a look at the 5 most popular online payment options for small businesses in Singapore.
But having a good online payment strategy doesn’t just have perks in the customer department. It also enables small business owners like you to easily track transactions.
3. Pay your bills punctually
No one likes late payment. The best way to manage your business finances from home is to set up a recurring bill payment. Doing so can help to automate monthly supplier or vendor payments.
This effectively eliminates the chances of you being late on your payments, and can help to increase the rapport and trustworthiness of your company.
In order to keep track of your inventory and recurring bills, consider hopping onto a business finance app. These apps usually enable business owners to input their bank details and payment dates, making recurring payments ultra-convenient.
4. Learn to use accounting software
Unfortunately, running your own business means you’ll have to get comfortable with numbers. Bookkeeping, taxes, and accounting are crucial to making sure your company complies with governmental laws. They also provide insight into possible business strategies your company could implement. Tasks like annual filing of taxes and accounts are part of running a business in Singapore.
Even if you hire a bookkeeper or have an accountant in your team, knowing the basics of accounting is essential to make money-related decisions for your company.
If you’re working from home, enrolling in a quick online course might help you to gain some basic accounting knowledge.
5. Keep an eye on finances
Cashflow problems and badly managed finances are some of the top causes of young business failures. Failing to plan properly or spending more than you can afford will lead to dire consequences.
In order to keep an eye on your business finances, we recommend tracking bank statements using apps or business software. As mentioned before, these business platforms are usually tied in with your business bank accounts, making financial tracking a walk in the park.
Being on top of your business finances means being able to predict possible pitfalls before they occur, helping you put in place SOPs or cushioning measures.
Get started on managing your business finances
Managing business finances might sound like a lot, but don’t fret. There are many business finance platforms on the market dedicated to streamlining business processes.
Aspire is a platform that integrates your business account, business debit card, and business reports all in one place. Platforms such as Aspire can give you a wider view of how different areas of your business strategy are working together.
If you’re planning on starting a business, Aspire offers instant incorporation packages. Depending on the package you choose, you can even opt for accounting services. Take your hands off the nitty gritty business details with Aspire!
Frequently Asked Questions
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