Managing your online business’s finances can feel overwhelming, especially if you’ve never done it before. Not knowing how to manage your online business’s finances properly can lead to all sorts of headaches. Like paying too much tax, incorrectly calculating your business expenses, and more.
But don’t worry, the team at Infinity 22 has got your back. In this article, we’ll outline the dos and don’t of managing your online business’s finances.
Do keep an eye on your cash flow
Cash flow is especially important for online businesses, so it’s important to keep an eye on your incomings and outgoings. Invoicing early and chasing up late payments is a thankless but necessary task to keep your cash flow looking healthy.
Forecasting your cash flow is another great way to keep on top of your business finances. Detailed cash flow forecasts can help you make better business decisions.
Don’t forget about your tax obligations
Nobody likes filing BAS statements or tax returns, but unfortunately they’re a necessary part of the job! Thankfully, you can outsource these tasks to a team of accounting professionals like us here at Infinity 22.
If you’re not ready to outsource, get your hands on some robust accounting software that can help you calculate how much tax you owe and keep you on top of your tax obligations.
Do review your financial goals for your online business
Another vital element of managing your online business’s finances is to review your financial goals often and make a plan for any potential setbacks.
A good financial plan contains a projected balance sheet outlining assets and liabilities, sales forecasts, budget for expenses, projected income analysis and more. If you don’t know how to put a plan like this together, it’s time to talk to the team at Infinity 22.
Don’t mix your personal finances with your business finances
This is a big one! Part of managing your online business’s finances is making sure that they don’t get muddled up with your personal finances, especially if you’re a sole trader!
By keeping your business and personal finances separate you’ll avoid a multitude of headaches at tax time, you’ll be able to track your deductible expenses more easily, and you may even have better borrowing power if you need a business loan down the track.
Do talk to the team at infinity 22
We work with sole traders, small businesses, and freelancers, all the way up to SMEs and multinational corporations. If you need help managing your online business’s finances, taxes, or processes, infinity22 can help.
Our services include but are not limited to; monthly accounting, budgeting and forecasting, cash flow management, tax services, strategy sessions and more.
If you have any questions, please don’t hesitate to get in touch. We can provide you with the information and guidance you need to do business better online. Book your consultation online or call us today on 0452 184 421.