How to stay on top of your SME's finances in 2020 and beyond
This year has not been kind to South African SMEs. Small to medium enterprises took a big knock due to the economic impact of the lockdown measures that were put in place to curb the spread of the COVID-19 pandemic.
However, all hope is not lost – there are plenty of silver linings to be found. Now that life has returned to some semblance of ‘normal’ as we knew it before, small business owners can get back to growing their enterprises. In fact, there are quite a few people who saw a gap in the market and started brand-new side hustles during the pandemic.
In short – now is the time to get those financial horses back in the metaphorical stable before they run completely wild. Here are a few top tips to stay organised in your business finances post-COVID:
1. Set up a business account
It may seem convenient to use your personal account for your business, but it actually makes things more difficult in the long run. Take the time to set up a separate account for business income and expenses so you can get a clear idea of the profitability of your venture. Pay yourself a ‘salary’ from this account; this way you won’t be ‘living out of the till’ (never a good idea).
2. Get to grips with your invoicing
If you want to get paid, you need to invoice and follow up on payments – it’s as simple as that. Develop a system that works best for you, and consider investing in a well-oiled app like this one or this one that takes the manual hassle out of sending off your payment missives each month.
3. Find an accountant you trust
Small businesses don’t stay small forever if you do things right. Keep an eye out for an accountant who understands your vibe, and that of your business, so you are able to call in some professional help once your enterprises scales to the point where you need some expert guidance. It’s better to be prepared than to be caught off-guard.
Following these guidelines will help you to stay on top of your SME’s finances in 2020 and beyond. Keep an eye on the blog in the coming weeks and months for more tips on money matters from the Experity experts. In the meantime, feel free to reach out to a member of the Experity team to find out more about our financial services; we’re here to guide you through the unchartered waters of being a financial grownup.