Monily The millennial era, did not just bring the revolution and boom of the digital media, it also saw an influx of entrepreneurs. A home based business is no longer part of the cottage business model; which has evolved exponentially into becoming globally born corporations. Since the internet made everything more accessible and available at the tap of an icon. Startups have started to rocket; as a matter of fact, they now account for more than half of the jobs in the US. However, even though the internet has empowered a great number of individuals to work for themselves. It is also important to understand that more startups shut down as compared to those that open up. One of the major reasons behind it is small business owner’s ability to manage and maintain their expenses and bookkeeping matters. Majority of the reasons behind these closures is the misinterpretation and mishandling of the business’s financial data. Within this article are 4 suggestions for small business owners on how to reduce their expenses on their startup.
Spend the smart way As a business owner, a lot depends on you. How you manage and control your money, spending too much too soon can sometimes result in your business-boots being hanged in the closet for good. Keep a digital trail of all your money and all of your expenses. Jot every expense related to your business down, from petrol expenses to salary expenses.
Get into the habit of Bookkeeping Spending is way too convenient for you to be noting it and jotting whatever you’re spending on a daily basis. A big problem small business owners have when they are starting up, is that they spend on daily minor expenses, from their personal account, rather than from the business account. Here is where technology comes in handy, updated software such as Monily does not need for you take out a weekend or a time of the day, to feed in your expenses and safe keep your receipts. You simply need to remember to take a picture of your recent expense. Monily will automatically add your expenses on to your expense and revenue sheet. You can also choose to see your average daily/monthly expenses to get a better feel of where you’re spending and on what.
Sort your payment method Every successful business’s secret is that it is well structured. Again, keep a separate business account and a separate personal account. Sort out how you want to get paid for the services or services you’re offering. Have a clear pathway on how to receive payments and also organize your accounts payable. The clearer and less messy your financial transaction are the more money you will be able to save.
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4 Ways to Reduce Business Expenses in a Startup On Monily’s Blog