3 Simple Ideas to Regulate Your Business Finances

Managing your business finances can be a real pain but there is no need to panic. There are a few simple ways to make your life easier while giving you a better idea of where you stand financially at the end of each month, week, or even day.

Though your business budget should clearly outline all the costs you need to think about, you must ensure that you stay on top of each payment to reduce your stress and keep in the black. The more you can simplify in business, the easier it becomes to focus on the things that make your company unique. Here are 3 ideas to get you started.

Create a Second Bank Account for Regular Costs

All businesses have regular costs such as energy bills, water, rent and outsourced services like IT. Having a separate account for this services makes it easier to manage your account so that you never accidentally overstretch yourself and miss a payment.

Paying the right amount into this account each month will allow you to ensure that your business continues to run smoothly without you ending up being chased for payments. Automating as many payments as possible is the best thing to do and this will allow you to concentrate on all the other things that make your business go.

Fix Your Costs

If you are managing a business where the cost of things fluctuates all the time, you would be forgiven for having a massive headache every time you tried to sort out your bills. However, this is no reason not to try and fix some of your regular outgoings where you can. For example, instead of variable IT costs, you could instead go for Fixed Fee Managed Services that still cover all your needs.

In many cases, taking a fixed fee deal is a cheaper way of doing things because it balances out your outgoings and you are more likely to make the most of the service being provided. When you know that your IT costs the same whether you ring the company to fix something or not, you’re going to ring!

Plan For the Year, Split By the Month

Some things cost more in some months and less in others. For example, you are more likely to use energy during the cooler winter months when you require heating in your office and during the peak of the summer season when you need to cool down! In more temperate months, it’s likely that your bill will be a little smaller. The averaging approach is best here.

If fixing your fee isn’t going to save you any money, then the next best thing to do is work out roughly how much your bill is going to cost over the year and then divide this into monthly payments. Pay this amount into your Regular Costs account on a monthly basis, ensuring that there is always enough to pay and you will find that the months where you pay less balance out the months where you pay more.