Managing Your Business Finances Effectively

There is a lot to deal with when you finally quit the dreaded office job and try to make a go of it as a full time writer. Finally turning a hobby into a career was a bit of an eye opener for me personally because I didn’t realise just what was involved. I had done a lot of research but nothing will prepare you for that day when you sit in your home office and begin work for the first time. Whilst I got used to a lot of elements of owning my own business quickly, one thing that did take me a little time to adapt to was the financial aspect of running my own business.

It is very difficult going from a regular income each and every month to getting paid by clients as and when the work is completed. I had purposely built up a list of clients before I left my job and really landed on my feet, but it does take some managing. For example, you have to be able to budget for bills, put tax payments away and make sure that you have an emergency fund should something go wrong. However, the most pressing aspect of it is making sure that you can buy the equipment you need to be able to work effectively and efficiently within a few months of branching out on your own.

There are two ways to do this. The first is business banking. You could apply for a loan via your business banking provider. You should set up business banking before you start because you are much better equipped to manage your finances that way. Business banking loans are the same as normal loans in many ways but they go on your business rather than your own name and credit report. As such, you may be in debt for the first few years of your business.

However, there is another solution. If you plan out the equipment that you need (computer, printer, fax, filing cabinets, desk etc) then you will be able to plan your saving and spending in advance. You may be able to obtain a cash advance via a payday loan. The beauty of payday loans is that there is no credit check and you could borrow money via one for equipment before your last regular salary payment or even afterwards as long as you have money coming in. Some companies that offer payday loans do accept applications from the self-employed. The great thing is that you avoid being in debt over a fixed period because it is payable when you get paid, so you get no debt and the stuff you need to get started!