Are you a young entrepreneur? Or you are ready to go into entrepreneurial waters?
Do you know what the hardest is in leading a business?
Handling the money that goes in and out of the company’s budget.
Why is it, you may ask?
Well, for starters, you have probably been working before. Now, the circumstances are different.
- You do not have the insurance of the company you are working for
- You do not have monthly payments on your account
You are your own boss, and it is you that decide everything in relation to money issues.
How should you best manage your finances?
You shouldn’t do it alone. You should have someone to help you in managing your finances. For example, if you have a few team members, each of the members could take care of a certain financial part of your business. In that way, you will not have a feeling that you are alone, and your team will be stronger. No one will feel left out, and you will all have an overview of the financial situation of the company.
Personal vs. business expenses
You shouldn’t cover company’s expenses with your own, personal money. Always bear in mind that the possibility of your company failing is huge. Besides leaving some money on side, for rainy days, keep in mind that you too should have a salary and that you too should spend your personal money on your personal needs.
Save the receipts
It is utterly important for you and your team members to know where your money is going. In order for you to keep track of this, you should save all the relevant receipts. You can also download an application, for example, Money Manager, where you will be able to keep track on all the personal and business expenses. In that way, you can organize yourself better next week, or next month, when you will get a clearer overview of your spending. This application is completely free, and you should follow the unwritten rule of not making any unnecessary expenses. Use everything that you are able to get for free.
Taxes? Financial statements?
Oh, the struggle! So many new terms you didn’t even know exist, right?
In short, you have to inform and keep track of paying your taxes. If you need some help regarding the tax issue or a financial statement issue, feel free to contact our Dotcom-Capital team. Just submit your case and we will contact you with further information.
Starting your own business is hard. You get to meet with many issues you haven’t even thought of. That is why you would maybe need a mentor. And Casper Ravn-Sørensen, the angel investor that have founded Dotcom-Capital, among other companies, is more than ready to listen to you and help you out!