10 FINANCIAL TIPS FOR SMALL BUSINESS

In the current economic climate effective management of your business's finances is more important than ever. The following tips will assist you in managing the finances of your business effectively.

Keep a record of your transactions

Be sure to always keep an accurate record of your transactions. Whether it's for an annual tax payment or audit or just for the assessment of your balance sheet, it is extremely important to keep a record of your debits and credits for future reference.

Keep business and personal accounts separate

File your business accounts and personal records separately. This will protect your business and prevent confusion in case of a tax audit and make management of these accounts much easier.

Protect your personal assets


Entrepreneurs often offer all their assets as collateral, putting themselves at risk of losing it all. Protect your personal assets by forming a legal business entity, thus ensuring liability protection so that creditors cannot lay claim to personal assets like a car or house to settle debts.

Know your financial situation

Monitor the financial progress of your business on a weekly basis. Know exactly how much money you have in the bank, how sales are progressing and how much stock you have left. Review your financial position against the set targets in your business plan regularly.

Plan your finances


To determine how much money you have to reach your goals, you have to plan your finances very thoroughly. Make sure you have a reliable accountant, whether personal or online.



Charge what you are worth


Charge what you feel your products or services are worth; don't settle for cheap to get more work

Find a reliable bank as business partner

If you don't have much capital, find a reliable bank which will provide you with the right financial help without charging high interest rates, and open a cheque account for business purposes.


Meet tax deadlines

Avoid the hefty fines and extra costs of late tax return submissions and other payments by planning in advance. Find a reputable tax adviser to assist you with good advice

Save as much as possible

Save as much money as you can every month, whether in a bank or otherwise. Try investing in assets that will provide a return, e.g. property.



Clear any unpaid debts

If anyone owes you money, make work of collecting it as soon as possible, else your money is working for someone else. Send them reminders and demand letters, but if that does not have the desired outcome, use professionals to assist you.
CMV Group of Companies

Tel : 012 991 4400
Fax : 012 991 3001
Physical: 17 Midas Avenue, Olympus, Pretoria, 0081
E-mail: info@cmv.co.za

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