Money worries are a common cause of stress among entrepreneurs. A 2023 survey by Goldman Sachs showed that 75% of small business owners experience financial stress. It’s no secret that running a business is risky, with up to 50% of new companies failing within five years, but there are ways to beat the odds. In this guide, we’ll share some effective steps you can take to keep your business finances in check.
Image source: https://www.pexels.com/photo/person-in-long-sleeve-shirt-holding-a-calculator-8297031/
Use budgeting and forecasting tools
One of the best ways to keep on top of your finances in 2025 is to utilise budgeting and forecasting tools and software. Advances in technology make budgeting and planning ahead simple and stress-free. Use your budget to monitor your income, track spending and allocate funds to different areas of the business. Budgeting provides insights into where your money comes from and goes and it can help you save, lower your outgoings and regulate spending in the month or quarter ahead. Forecasting tools enable you to plan in advance, prepare for changes in your income, for example, if you have a seasonal business, and lower the risk of cash flow issues. It’s hugely beneficial to flag cash flow problems early as this will give you time to find solutions and relieve pressure.
Get expert help
Many business owners have a diverse range of skills, but they don’t always have experience in accounting, bookkeeping and managing business finances. If you’re not an accountant, you’ve never run a company before, you’re unfamiliar with corporate taxes or you don’t have time to manage the accounts, it’s a great idea to get expert help. You can outsource accounting, seek advice from accountants and financial or tax advisers, or use services such as an EIN application service to save time and ensure your business is compliant. It’s also wise to familiarise yourself with tax rules and regulations. If you have time, you may want to explore training courses or workshops to help you with the financial side of running the business.
Set clear payment deadlines
Outstanding invoices are a leading cause of debt for businesses, especially small companies and start-ups. If you’re owed money, there’s a risk of cash flow issues or even going bust. Setting clear payment deadlines is important for managing cash flow and ensuring you have the resources you need to cover costs and invest in your business. Whether you sell to consumers or business clients, it’s crucial to establish deadlines, issue invoices promptly and remind customers when their payments are due. Implementing policies can help you prevent delays and manage outstanding payments effectively. It’s also important to communicate with your customers so they understand when they need to pay, how to make the payment and how to get help if they have any issues.
For many business owners, managing their finances is one of the toughest challenges. There are risks involved in setting up a business, but being your own boss can also be lucrative. To help you keep your finances in check, use budgeting and forecasting tools, get expert help and set clear payment deadlines for your clients.
