FINANCIAL MANAGEMENT FOR SMALL BUSINESSES

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Author: Karyn Winrich April 28th 2024

Running a small business requires not only hard work but also financial management. There are several strategies and tools that small business owners can utilize to stay on top of their finances and ensure the long-term success of their businesses. Today, Capital Growth Network invites you to read on to learn our top tips for managing your finances as a small business owner.

 

Establish a Financial Plan and Regularly Review It

 

The most important thing you can do as a small business owner is set a budget and review it regularly. A budget will help you plan for the future of your business by allowing you to allocate funds accordingly. Additionally, it will help keep track of where money is being spent, so that you can make adjustments, if necessary.

 

 

Have Clear Objectives for Business Expansion

 

It’s important to create specific goals for the growth of your small business. Having detailed objectives will provide an attainable roadmap for where you want your business to be in the next few months or years. Without proper planning, businesses can become stagnant or even fail due to a lack of direction or ambition.

 

Digitize Your Records

 

In today’s digital age, there’s no reason to be buried neck-deep in paperwork. By digitizing your records, you can facilitate better organization and avoid the stress of misplaced documents. Try saving your files as PDFs to make them easier to store and share, as well. You can also use free online tools to help you change file formats if necessary.

 

Invest in an Accountant or a Powerful Accounting System

 

Accounting software can take the hassle out of bookkeeping. They can help keep track of financial transactions, invoices, taxes, and payroll conveniently. Investing in accounting software will save you time and energy, as well as ensure that your taxes are accurately filed at the end of the fiscal year. Accountants however, are invaluable tools for ensuring accuracy as sometimes, even the best software solutions do not offer enough tailored advice. An experienced accountant should have a better understanding of individual needs and can ensure all legal requirements are met throughout the process. Working with an accounting professional saves time and effort while avoiding costly mistakes or potential penalties associated with non-compliance.

 

Upgrade to POS Inventory Management

 

Switching to a POS platform, offers much more than just streamlined payment processing. Businesses can easily manage inventory levels and control costs associated with ordering new supplies or goods. Detailed reports and analytics allow for monitoring sales performance, providing insight into what works best in terms of sales volume, stock levels, cost savings, profits, etc. Having access to this information makes running a successful small business easier.

 

Implement Financial Strategies

 

The task of managing finances can be intimidating for many individuals, particularly for those who are self-employed. However, there are various tools and resources available that can simplify this process and help businesses stay organized. By investing in such solutions and collaborating with accounting professionals, individuals can feel confident that they are taking the necessary steps toward long-term success. Utilizing these tools can provide peace of mind and enable individuals to focus on growing their businesses without the added stress of financial management.

Accounting AccountingAdvice Banking Cash FinancialAdvice money MoneyAdvice

A CASHLESS SOCIETY IN A NEW WORLD ORDER

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Have you noticed the gradual yet subtle changes to the banking system? The:

  • increase in branch closures.
  • reduction in staff and counter services.
  • Introduction of digital currencies.
  • introduction of mobile phone banking.

 

Do any of the above cause you concern, or do you perceive these changes as beneficial innovation and necessary for advancements in efficiency? Let us examine the implications.

 

Cash may soon symbolise the only freedom left available to us. We live in a society that openly tracks and monitors our every move and to some extent, our thoughts using algorithms based on our online activity. From the minute you leave your home, you are monitored by CCTV to and from your destination. When you tap in and out with an oyster card, your entire journey is mapped out. When you make purchases using a credit or debit card, your every purchase is logged.

 

Cash offers some sense of privacy, whether it’s making purchases or sojourning for some personal time. There are numerous people in our society who still prefer cash transactions, what will be the agenda for them? Will they be de-facto forced into to the digital world of finance by removing cash despite their protestations? Where’s the democracy in that? Will there be a “Don’t get left behind” shaming campaign starring celebrities assuring us that it’s ok with nothing to be afraid of? Where’s the sincerity in that? It seems that democracy is either slowly being eroded, or it picks and chooses when and what to apply itself to.

 

There was a time when a mobile phone was just another device used for making and receiving calls and text however, it has in recent decades become an irreplaceable and often addictive appendage rather than an accessory. So much so, that you are required to posses a mobile phone for most if not all online bank, crypto and credit card accounts for the purposes of login and ID authentication. In some cases, without a mobile phone, you’ll have no access to your online accounts and with the reduction in high street branches and counter services, access to your money may become impossible [without a mobile phone].

 

If the new world order is to be globally connected by the 5G network, then it makes sense to assume that in time, some or maybe all the governing institutions (Finance, Politics, Religion and Education) may become universal i.e. a global digital currency. As asked earlier, what will become of the people who still want cash and thus reject this ever-growing digital world? The age old three-step modus operandi:

 

  1. Discredit

 

  1. Demonize

 

  1. Destroy

 

Benefits of a cashless society

 

 Limitations of a cashless society

 
Fraud prevention

 

 An enslaved society
Increased efficiency in transactions

 

 Arbitrary freezing of identity.

 
Zero risk of losing cash in public Death of cash only businesses.

 

For anything to be appealing, there must be some aspect of benefit to make it worthwhile (e.g. the tree of good and evil had good in it). So of course, innovations in Fintech are beneficial to us but no system is perfect.

 

Can you think of anymore?

 

A Few Quotes

“I used my debit card in a well-known supermarket to buy groceries. A few weeks later, I received vouchers from the supermarket. When I looked at the vouchers, they were for all the items I had bought using my card. Some people might think that’s great, not me. It felt intrusive and I felt as though I was being monitored. It made me paranoid. I went back to using cash.” Mike, London.

 

“The news that paper rail tickets could be scrapped [Metro, Mon] made me angry. We are supposed to live in a democracy, but many companies and the government are forcing us into having to buy smartphones to buy tickets and access information. I neither want nor can afford to buy a smartphone and pay for its’s running costs. My phone fits easily into a pocket and is great for calls and texts. Tickets and banking online are useless if you have no charge or are somewhere with no reception. Give me paper tickets and a person to talk to face-to face to ensure we get the best service, any day. Jane, Hastings.” (Metro ed. 2023)

 

“Why are we being blindly led to a cashless society? As far as I can see, it’s another nail in democracy’s coffin. Why is an important decision as this not put to the people’s vote? It would be nice to hear the views of other people. M Keevil, by email.” (Metro ed. 2023)

 

 

REFERENCES

  1. Metro (ed.) (2023) ‘Do we want a cashless society?’, Metro, 8 February, pp. 13–13.

Ecopreneurship: Tips for Making Your Business More Sustainable

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By Karyn Winrich 22nd September 2022

 

Today, consumers expect a promise of sustainability from businesses, and they want to see action to show a commitment to being eco-friendly. As an entrepreneur, you have the opportunity to build a green business from the ground up. Start by considering these tips.

 

Making Your Supplies More Sustainable

If your business produces a tangible product, you’ll need materials to create and ship it. One way you can be visibly environmentally conscious is to offer sustainable packaging. Some common examples include biodegradable materials, such as packing peanuts and recycled paper and cardboard. You can even try cornstarch packaging. If you’re selling a product with fabric, opt for an organic version. Additionally, you should commit to using the minimum amount of packaging necessary. Large retail stores are often criticized for their overuse of packing materials.

 

Monitoring Energy Usage

Part of reducing your carbon footprint is recognizing your energy usage issues. You can monitor the amount of energy your company uses with a smart meter. Light, heating, and cooling make up the vast majority of energy usage in an office building. You can find ways to reduce that usage by taking advantage of natural light and opening the windows on days with pleasant weather. Simply turning off a light when you leave the room can make a difference.

 

Reducing Your Waste

Reducing waste is the easiest way you can be more sustainable. No business can completely reduce all waste. However, you can be paper-free as much as possible and make an effort to recycle. Provide recycling bins in your office and train staff to recycle effectively. You can even enlist a company to pick up your recycling for you.

 

Seeking Funding for Sustainability

Sustainable materials are sometimes more costly, but starting a business can already be expensive. If you’re concerned about funding, search for capital specifically available to entrepreneurs starting a sustainable company. For example, the government offers grants to businesses practicing environmentally friendly commerce. African American-owned startups have access to funding from the Coalition to Back Black Businesses, the National Association for Self-Employed, and the Minority Business Development Agency.

 

Marketing Your Green Business

One significant advantage of going green in business is that you can use that as a marketing strategy. Consumers are becoming more conscious about their carbon footprints, and you can make them feel like they are contributing to a solution by shopping with your business. Research shows that consumers are looking for companies that better reflect their personal concerns about the growing issues with the environment. Your marketing strategy should be consumer-oriented, meaning you must look at the world from the consumer’s point of view.

 

Staying Organized for Productivity

Being eco-friendly can also help you create a more organized office space. For example, you can create an entirely paper-free office. Start by digitizing your files. Not only is it more environmentally friendly but it’s also more sensible. Convert files to PDF so you can download them to your iPhone and other devices. You save paper and have access to your files wherever you go. You also don’t have to worry about having access to Wi-Fi to see them.

 

With a strong sustainability policy and evidence of being actively eco-friendly, your business will make a great impression on customers. By staying organized and continuing your green education, you’ll see great success. Just remember to be flexible and listen to the experts.

SAVING TIPS 2020

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Saving isn’t as hard as it seems. If you’re looking for some smart savings guidance, these money saving tips should help you start to build up a handy nest egg.

· Create a budget by adding up your monthly spend on essentials like rent, utility bills, food shopping and car costs, to see if you have any spare money that could be moved into a savings account

· Start saving with a basic savings account. Saving even a small amount will give you peace of mind and get you into the savings habit

· If you have more money available, consider a higher-interest account or invest in an ISA. If you already have an ISA, maximise your allowance for this year

· Start long-term savings as soon as you can. Speak to your employer about possible pension schemes to join

· If you get a windfall of money, think about putting a percentage of it into your savings.

MAKE SAVING MONEY A HABIT

Saving money doesn’t have to be a chore. There are some easy ways you can get into the habit of saving money on a regular basis.

With a standing order, you tell your bank to pay money from your chosen account to another account at regular intervals – for example, once a month. If you’ve taken the time to work out how much you can save each month, make sure the money leaves your current account straight after you get paid. This way, there’s no temptation to spend the money you plan to save.

Some banks now offer you the ability to round up the amount you spend on your debit card to the nearest pound and transfer the difference into your eligible savings account. This is a painless way to start adding to a savings account

GET SMARTER WITH YOUR BILLS

· Are you using all your minutes on your current mobile phone deal? If not, see when your contract expires and get ready to switch to a cheaper one.

· And what about utility bills? Could you pay less for electricity and gas? What about home or car insurance? Some financial comparison websites have tools that let you work out if you could find a cheaper deal. Less spent on bills, leaves more to save.

· Some companies offer discounted rates when you pay by direct debit.

· Many companies (e.g. mobile phone companies, broadband providers, etc) offer short-term bonuses or incentives. Just make sure you know when these run out so you can check you’re getting the best deal.