How to handle your finances as a start-up entrepreneur

In case you were not aware, March is termed the Financial Month, so we will be talking a lot on finances this month.

In this articles we would like to give you a few tips on how to handle your finances as a new entrepreneur. A good understanding and management of finances should be your priority when you start a business. Even if you decide to hire an accountant or bookkeeper to manage the books, you still need to familiarize yourself with basic bookkeeping and money management principles and activities.

Here are 4 tips on how to handle your finances if you have just started a business:

1. Open a bank account.
Once you have registered your business, you will need to open a commercial bank account. Start by selecting the bank you want to work with – a bank that will be small-business-friendly. It should be easy to open a bank account for your business, nothing complicated is required. The next step will be to deposit funds into your new account

2. Get a professional.
Accountants and financial advisers have always been trusted and respected helpers of small business owners everywhere. Their intimate knowledge of the profession as well as tax laws in their jurisdiction will save you money almost every time. The thought or temptation to do it yourself so you can save a buck or two will creep in sometimes, but it’s almost never more cost-efficient in the end. An accountant will almost always find more deductions and keep you penalty-free. Just make sure you have the cleanest records, and be more organized year-round. But when things get technical or taxes are due, save yourself the money, time and headaches and call in a trusted professional.

3. Accepting cash and online payment services.
In today’s competitive business world, you must provide customers with many ways to pay, including cash, debit card, credit card and electronic cash. There is a cost to provide these payment options – account fees, transaction fees, etc. So make sure to shop around for the best service with the best prices. Not all banks and payment processing services are the same, and fees vary widely, so do your research and compare prices.
Online payment services: PayPal is one of the most popular online payment services with more than 40 million members in 45 countries, offering personal and business account services.The advantages of online payment services are that they’re quick, easy and cheap to open and you can have the funds deposited directly into your account.

4. Establish payment terms and conditions.
Every small-business owner needs to establish a payment terms policy. You may want to standardize the way you get paid, at the same time you will also have to be flexible enough to meet clients’ needs on an individual basis. Setting payment terms covers deposits, progress payments and extending credit. It’s important to establish a clear, written payment terms with clients prior to providing services or delivering product. Your payment terms should be printed on your estimate forms, included in formal contracts and work orders, and printed on your final invoices and monthly account statements.