Starting your own home business is exciting, but the money side of things can be a bit of a headache. You’ve got invoices to track, expenses to manage, and probably a lot of late-night Googling about tax stuff. But getting a grip on your finances early on makes life so much easier. Here are a few simple things you can do to stay on top of it all.
KEEP YOUR BUSINESS AND PERSONAL MONEY SEPARATE
This is a big one. If you’re still using the same account for everything, it’s time to change that. Open a separate business account so you can see what’s coming in and what’s going out. It’ll save you hours of confusion later when you’re trying to figure out if that takeaway was a business lunch or just a lazy dinner.
TRACK YOUR EXPENSES REGULARLY
It’s so easy to forget where your money’s going. One day you’re buying printer ink, the next it’s packaging materials, and before you know it, you’ve got no idea what you spent last week. The trick is to write it all down. Use a notebook, a spreadsheet or an app, whatever works for you. Just make it a habit so nothing slips through the cracks.
SORT YOUR TAXES EARLY
Don’t leave it to the last minute. Seriously. Set reminders, mark the deadlines, and keep your receipts organised. If you’re not sure what you can and can’t claim, it’s worth speaking to an accountant, even if it’s just a one-off chat. They’ll help you figure out what’s what and might even save you some money.
BE PREPAPRED FOR THE UNEXPECTED
There are always surprise costs when you’re running a business. Equipment breaks, suppliers raise their prices, and sometimes payments take longer than expected. Try to keep a little buffer aside each month so you’re not caught off guard when these things happen. It doesn’t have to be loads, but even a small emergency fund can be a lifesaver.
IF SOMETHING SEEMS OFF, DONT IGNORE IT
Mistakes happen, and sometimes so do scams. If you ever notice strange transactions, missing money, or anything that feels wrong, don’t let it slide. Get in touch with your bank, and if you need help sorting things legally, you might want to speak to a fraud solicitor. It’s better to act early than wait for things to snowball.
KNOW WHAT YOU’RE CHARGING
When you’re just starting out, it’s tempting to set your prices low. But make sure you’re actually covering your costs. Think about your time, your materials, your energy bills, everything. You deserve to earn a proper wage, not just scrape by. Don’t be afraid to raise your prices as your business grows.
MAKE TIME FOR A MONEY CHECK-IN
Once a week, sit down with a cuppa and look through your finances. It doesn’t have to take long. Just make sure everything looks right, you’ve sent any invoices, and your expenses are up to date. It keeps things running smoothly and helps you feel more in control.
Running a business from home isn’t always easy, but managing your money doesn’t have to be a nightmare. With a few simple habits, you’ll feel much more confident about it all.
