Here at WorldRemit, we’ve been helping our 4 million customers send money abroad for more than 8 years. We’ve become a trusted partner to consumers who transfer money across the world and now we’d like to help businesses to pay less and send money overseas more easily too. Here’s the first in what we hope is a helpful series of blog posts for new and small businesses:
As a small business, how can I manage my finances?
Start off simple
There’s generally no need for complicated or expensive systems in a small business. When you’re starting out and the business is growing it’s important to make sure you’re spending your time in the right way – winning clients, setting up supplier contracts or hiring the right staff to help you – then it is to spend time on complicated systems and processes.
Of course, it’s important to track all your incoming and outgoing monies but this can often be done in a simple spreadsheet to start off with. Later down the line when you know how your business will run and what requirements you might have e.g. payroll, expenses and monthly reports, there are lots of simple off-the-shelf systems that can help you for a small amount per month.
Ask the experts
Depending on the way you set up your business (limited company, partnership, sole trader) there could be different financial setups required. If it’s just you working alone you won’t need to be as mindful of communicating your sales and expenses with a business partner.
The tax implications of owning a small business can be complicated however straight-forward your organisation is, and it’s always important to keep accurate records. Most accountancy firms will have an exploratory conversation free of charge to help you form your thinking around what you need to do and what might work best for you and your business.
Make time to speak to 2 or 3 firms until you find one you enjoy communicating with – an accountant who can put things in relatable terms can be worth their weight in gold when it’s time to pay your tax bill or work out how to structure your business.
Take time to keep records
Finances and admin are not always top of a small business owner’s list of priorities – but it’s important to make time to ensure you keep track so, when it’s time to pay your tax bill, you’ve got an accurate idea of what to pay.
Ideally set aside an hour a week to recap the previous weeks’ activities – record your incomings and outgoings, and keep accurate expense records with receipts or you might not be able to claim them against the company books. Again, a simple spreadsheet can suffice.
Use your network
Business networks can be a great opportunity to find out how other small business owners operate and manage their businesses. It’s always useful to get tips from people who might be a little further along their small business journey than you are.
Networking events are really helpful to find new customers, suppliers or form partnerships and relationships that might be useful down the line.
Look after the pennies
When you look after the pennies – the pounds look after themselves! It might sound obvious but the more you can save on essential business costs the easier you make it on yourself and the bottom line.
Shop around for everything from stationery supplies, liability insurance and business rents. Don’t be afraid to negotiate! Lots of companies offer discounts for small businesses.
In the coming months, we'll be launching business accounts in the UK. If you're a UK registered business that's looking for a better way to send money, we'd love to hear from you. Send us an email at firstname.lastname@example.org.