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  • Finance tips for new small-business owners

    Starting a small business is an exciting time for any entrepreneur, but there are also a ton of things to think about.

     Take the time to get your finances in orderFinances are the most important aspect when it comes to business success, so here are a few tips for staying profitable and sane.

    • Get organized: Organization is key to tracking your financial situation. It may feel like you're too busy to sit down and make a record of your expenses, but having everything laid out will save you from a lot of stress later on. Forbes suggests dedicating a set time each week to organizing and checking your finances. Whatever method you prefer, make sure you remind yourself to stay on top of things.
    • Separate personal from business: It can be tempting to mix business with pleasure when you use the same credit card for both, or have one card handy over the other. However, it's best to keep types of expenses separate. This minimizes confusion during tax time and makes tracking your business budget much easier. A separate business checking account and credit card are excellent for drawing a distinct line between personal and business.
    • Budget home expenses: Although they should be differentiated from company funds, personal expenses can still be a vital part of owning a small business. By cutting down on your cost of living, you can compile a cash cushion in case you need it for your business. It's a good financial back-up plan, and maintaining consistent budget habits throughout the various areas of your life will help budgeting come more naturally.
    • Keep an emergency fund: Starting a business may not be immediately profitable, so an emergency fund can pay for everyday expenses in case things take a season or two to blossom. Extra finances will also keep your business away from debt, allowing you to put all your focus toward success.