As an entrepreneur, there are so many things you have to focus on. But no matter what you do, it’s important to have enough liquidity to keep yourself in business. That’s why you need to keep an eye on your expenses, your profits and whether your clients are paying their bills on time. Even if you’re bringing in big contracts or making big sales, if you spend too much or if people fail to pay you, you can get into a lot of trouble. Luckily for you, we’ve put together a list of three ways to keep track of your expenses like a pro.
- Get a good accountant
Accountants can be pricey, which is why many entrepreneurs tend to think ‘Ehhh, I’ll do it myself’. If you know enough about accountancy that’s a good move, but if you barely know how to fill in your private taxes, an accountant is worth every penny. Your accountant will keep track of everything you spend and make and can tell you when you’re spending too much or if your debtors aren’t paying their bills on time.
- Make sure your bills are paid on time
Having enough liquidity is super important to keep your business afloat. That’s why you have to act quickly if one -or multiple- of your clients aren’t paying their bills in time. For that reason, it’s always a good idea to have a debt collection agency (Dutch: incassobureau) on speed dial. Hiring a debt collection agency (Dutch: incassobureau inschakelen) is a good idea if you want to get your money back fast. Sometimes owners of companies hide behind difficult corporate structures so it’s hard to find out who needs to pay your invoices. Other times, other debtors are also looking for money… so if you wait too long, you might be at the back of the line.
If your client is a long-time client, it’s always a good idea to give them a call first before sending a debt collector to retrieve your funds. But if you notice they aren’t picking up your calls, it’s important to take the necessary steps quickly. Like mentioned before: if someone else for instance files for bankruptcy for your client, they will get paid first and there’s a chance you won’t get your fee.
- Don’t forget your long-term business plan
Making money is great – pretty much everyone will agree to that. But many young businesses fail because the owner never had a long-term plan for their business. Make sure you have a good plan for the next few years. Write out how you want to expand your business, when you want to hire new employees, how much money you need to save to make ends meet if you hit a rough patch… While enthusiasm brings you far, a great plan will bring you further. If you’ve never made a business plan before, we recommend reading up on it. You can also hire an external consultant to look it over and give feedback.
Good luck with your business!
About Carson Derrow
