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Figuring Out Your Finances When Starting a Business

One of the most overwhelming parts of starting a business is staying on top of the finances. Tax-management and accounting for future costs are just a few of the new things on your agenda. Getting help from an accountant will guide you through this initial stage and ensure that everything is done correctly. The tax side of things is tricky at the beginning, but once you’ve had to sort it out yourself a few times, it becomes less terrifying.

Even with the help of an accountant, make sure you are keeping a record of everything. This is something that will become second-nature to you in no time. Using an online bookkeeping system will help you to stay on top of this and not have any unpleasant surprises. Keeping an eye on your finances will help you to make appropriate decisions with upcoming costs. It’s also helpful so that you can be particularly careful as your tax return deadline approaches, something not to be feared, but certainly to bear in mind.

The next thing you need to do is figure out what your costs are, and what they’re likely to be. The key to staying on top of your finances is being strategic in your decision-making. When thinking ahead, consider your different business endeavours and how you can cost-effectively go about them. 

If your business requires a vehicle, consider leasing a car or pickup truck. When selecting truck rentals for commercial fleets, decide whether you are after a heavy or light-duty vehicle. Align this decision with your business objectives. You might ask yourself: how often will I be using this vehicle? What will it typically be used for? This way, you can select the appropriate truck or car and be sure that it will meet all of your needs. 

When envisioning your business, you might have pictured owning a vehicle. This might be ideal in the long-term, but leasing at first gives you time to trial the vehicle and is generally more cost-effective. Leasing a vehicle is an excellent choice while you are still growing your business. Depending on the dealership, you only pay around 20% of the car’s value depending on the rate at which it depreciates.

Other costs to consider include office space and other business essentials such as stock and technology. Take it one step at a time and separate your current needs from your future ones. This way, you can budget accordingly while focusing predominantly on what needs to be invested in first and foremost. Essentially, all you need to do is prioritise and then order your finances accordingly to this. 

Professional fees are the best starting point to focus on. Getting help from the appropriate sources will kickstart your business and teach you more about finance management along the way. Don’t be afraid to ask for help, and remember that everybody feels overwhelmed in the beginning stages of starting a business.

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