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Financial Management Tips for New Business Owners

Scott Bilker Scott Bilker is the founder of DebtSmart.com and author of the best-selling books, Talk Your Way Out of Credit Card DebtCredit Card and Debt Management, and How to be more Credit Card and Debt Smart. Receive the 5-Year Loan Spreadsheet when you subscribe to his email newsletter.

Being a new business owner in a competitive industry can be as nerve-wracking as it is exciting. There are so many directions you can steer your company — just as many as the number of beginner traps you can accidentally fall into while maneuvering the industry landscape.

It’s not an easy time for new business owners, but it doesn’t mean you have to resign yourself to stress. One way you can help get a good start is to keep an eye on your finances over everything else. Here are some excellent financial tips for startup owners.

  1. The threat of potential scams as a new business owner

If you want to stay on top of your company’s finances, the first thing to consider is the potential of scams and how to avoid them. Unfortunately, there are situations where the business owner understands what needs to be done, only for the company to suffer due to the actions of employees that weren’t adequately trained to handle their responsibilities.

Such is the reason why it’s not a bad idea to train employees to watch for scams, especially when it comes to phishing, fake invoices, and insurance fraud. If your business gets caught up in such scams, it’s best to look into chargeback companies to help get your money back. If you’re interested, you can read the mychargeback review to see what such a service can do for your business.

  1. The importance of hiring an experienced accountant

When it comes to managing a business, experience counts for much. It’s something that can help new business owners thrive, as they can use the expertise of others to keep their business endeavors afloat. In the case of finances, you can use an experienced accountant to get a great start.

The reason why experience matters for accountants is they can more easily offer insight about what to do next when it comes to business decisions. They also have contacts and a wealth of business knowledge you can use to the best of their ability. While there’s little wrong with an inexperienced accountant, startups need experienced professionals to outpace the competition.

  1. When it comes to loans, borrow only what you need

Last but certainly not least, one of the reasons some business owners have trouble with loans is that they often borrow more than they need — resulting in higher interest rates down the line. Such is why small business loans tend to be flexible with the rates and amount borrowed. By borrowing what you need, you get to make full use of the loan, giving you the best possible chance of paying it back in time.

There’s no need to be afraid of loans if you plan as early as you can. There are times when an extra influx of cash is what a new business owner needs to stay afloat.

Keeping track of your finances can be a challenge for new business owners, but there’s no need to fret. The above tips are there to help you handle the situation without overextending and taking risks.

This entry was posted in Earning Income, Financial Planning. Bookmark the permalink. Read more articles by Scott Bilker. (Also see articles by all authors and articles in all categories.)

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