Make and stick to your budget

If you don't have a budget for your business, you need to make one now! A budget is an essential part of a business plan. You need to know exactly how much you are spending, how much you are making and whether or not you are actually turning a profit. When you run a business you are generally going to make larger purchases, unless you have a budgeting system in place, you will have no way of knowing whether or not you have the money needed to actually pay for what you purchase.

Keep up on invoicing

When you provide products or services, you need to make sure that you are getting paid for them. Do not let the excitement of selling negate the importance of collecting money that is due. Billing and invoicing should be done on a regular schedule and your clients should know what the schedule is and when they are expected to deliver payment. If you are working on a larger project that will span a longer length of time, require some money up-front and set dates for when consecutive payments will be required. Encourage clients to pay early by offering discounts. Make it easier for clients to pay you by accepting credit card payments. Additionally, collection becomes an issue for the credit card company to deal with; you can remain focused on your business.

Use interest to your advantage

Using credit cards to finance your business purchases is convenient and easy, but be careful. Credit cards are a good way to supplement your cash flow, but interest payments can accumulate quickly. Look for business cards that offer low interest rates and reward points. Pay off your balance quickly! Instead of being worried about interest accumulating against you, use it in your favor. Put what cash that you do have into an interest bearing account. Make sure that the cash you are not using is growing. CD and savings accounts are good options for allowing your money to grow while still keeping it liquid.

Mind your credit reputation

If you have good credit, use it to your advantage. Establish a line of credit at your local bank or credit union. This line of credit can serve as a helpful safety net for your business finances. Sometime the financial institution will offer you special rates to entice you to become their customer, especially if you have a history of good money management. If your credit standing is less than admirable, start paying off your outstanding bills and be aggressive about it. Schedule how you will make your payments; pay off high interest and high balance accounts first. The faster you get back on track, the sooner you will be able to repair your credit worthiness.

Get professional help

Growing businesses often need an outside set of eyes and ears to help them obtain valuable perspective and stay on track. The same is true with improving business finance. You may want to consider hiring a financial advisor, accountant, or bookkeeper to run financial reports and give advice. You need to know where you stand and a financial professional can give you a good objective opinion.