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How to Stay on Top of Your Finances as an Entrepreneur

01 May 2018, 15:44 CET

Today's entrepreneur is different than at any time in the past. As more and more professionals branch out on their own taking their business ideas to a global marketplace, it is necessary to work and compete in a market that is as big as the planet ? and that's pretty big!

Many new businesses launch online which adds to the stress and confusion of staying on top of finances with all those currencies floating around out there, so if you intend to stay on top of your own finances as an entrepreneur, a bit of advice is in store.

1. Begin by Keeping Personal and Business Finances Separate

Commingling of funds is never a good idea because you can quickly become overwhelmed as to what money belongs in what account. As an entrepreneur, you need to find a software solution that allows you to view all your accounts from one central dashboard, without the need of trying to keep track of several spreadsheets. It's easy to get confused, double enter a sum, and before you know it, you've just made days of work for yourself sorting where that clerical error occurred. With software like BankSense, you can keep up with all your accounts in real-time, but they will remain separate for tax, business, and personal purposes.

2. Know When to Hire a Bookkeeper or Accountant

One of the things which HM Revenue & Customs doesn't take lightly is what they believe to be tax avoidance. When you are juggling currencies, inaccurate conversions and calculations can land you in a world of trouble. If you are regularly involved in international commerce, it pays to hire an accountant to make sense of what the taxman wants to know. An accountant can also help you with things like your pension, and services such as UK Pension Guru can prove useful. For example, if you have been running a business in the EU, your accountant and the internet can advise you on things like QROPS and whether you qualify.

3. Don't Forget to Budget!

With so much emphasis on international transactions, you might get caught up in the moment. Why not look into software that can keep track of your money in real-time while you set about making a budget going forward? You can print reports for any time period you want to examine so that your budget can be drafted based on historical figures. With the right financial software, it is easier to budget, and certainly much easier to recalculate a budget if the numbers show a different pattern than you had anticipated. Never underestimate the importance of setting a budget as an entrepreneur.

4. Learn to Get Along with an Entrepreneur's Best Friend – Technology

Finally, it's time to learn to get along with your very best friend, technology. From the financial software you use to your ERP (Enterprise Resource Planning) software and digital communications, and everything techie in-between, you will want to use as much as possible to take the pressure off you.

The key is in finding software that integrates well with other platforms so that you can handle everything from one dashboard. Remember, you can only do so much, so the easier you make it for yourself, the more you can accomplish. Learn which technology best suits your industry and which is user-friendly enough for you to step quickly into, and you will find that life as an entrepreneur is sweet.

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