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Financial Tips For Your Blogging Business

No matter whether your blogging business consists of just you and your computer, or you have turned it into a big business employing numerous people, you need to keep on top of your finances. There are a number of monetary matters that are unique to blogging companies, and cash flow problems certainly tend to be heightened. After all, irregular cash flow can be a problem for all business owners, but it is especially the case for bloggers who do not have ‘X’ amount coming in on ‘Y’ date every month.  With that being said, continue reading for some advice…

Dealing with irregular cash flow

In an ideal world, everything would run smoothly and all our accounts would be settled on time. Unfortunately this rarely happens and it can cause substantial problems for small business owners in particular. After all, small blog businesses often do not have the resources to cover such fluctuations in cash flow. Nonetheless, there are some measures you can take to control cash flow. So, keep on reading to discover some top tips for dealing with irregular cash flow.

  • Open separate business and personal bank accounts – First and foremost, it is definitely advisable to open a separate business account. A lot of business owners attempt to handle everything from their personal account and this is where things get confusing. If you have a separate account you can also link it to accounting software, which will help you with creating business reports, financial statements, calculating taxes and such like.

  • Develop a cash flow plan – It is vital to have a cash flow plan in place so you can have as much control as possible. You need to have full understanding of what your monthly expenses are and when they are due. If you have a total amount of expenses you need to pay each month, this sets up a goal and gives you something to work towards.

  • Prioritize your expenses – Of course, it is imperative to make sure you keep on top of all of your expenses. Nevertheless, it is also vital to recognize what expenses are of the highest priority, as there may be times when you cannot meet all of your bills and costs. So, what is the most critical aspect to your business? Perhaps it is your supplies? If so, put paying the suppliers at the top of your priority list.

  • Make payments easy – Another tip is to make payments as easy as possible for your customers. They shouldn’t have to go through several steps or be forced into paying via one method. You should give them plenty of different options to choose from. Direct bank transfer, credit cards and PayPal tend to be the most popular solutions. It is advisable to try and avoid paying in check, as this will cause delays before the money arrives in your bank account.

  • Pay yourself a regular salary – As a blog business owner, one way you can help yourself is to take a regular salary. If you mimic a regular income schedule you will be better equipped to deal with cash flow issues. Set yourself up as an employee when it comes to accounting and write yourself a regular paycheck.

Cash flow mistakes

Read on to discover some of the top cash flow mistakes you need to avoid…

  • Failing to be realistic when it comes to the amount credit control costs you – You need to consider the amount of time that chasing payments takes, and so you need to be realistic about how much of a cost this is having on your business in terms of time that could be spent elsewhere. Know how much your time is worth. It is likely that you will find that you simply cannot afford to chase your creditors yourself.

  • Being too lenient – One of the biggest errors blog owners make when it comes to cash flow is being too lenient. You may not want to rock the boat, but if you are seen as too lenient then clients and customers will attempt to take advantage of you. They will simply assume that you are happy to wait for the money and so they will take as long as possible to pay their bills. You will become bottom of the list of priorities.

  • Failing to check up on payment promises – Has a client promised to pay your invoice on a particular day? If so, you need to make a note of this and make sure you follow it up. If you find that the client does not pay on the day that they have promised, get on their case straight away.

  • Failing to provide your terms and conditions when you quote – If you do not supply your terms and conditions in a clear manner whenever you make a quote, you are leaving yourself wide open to problems. A lot of business owners make the mistake of printing out their terms and conditions and merely supplying them when they send an invoice. This is too late.

  • Having no terms and conditions – An even bigger mistake than the one that has just been mentioned is having no terms and conditions at all. The same can be said for outdated terms as well.

  • Not hiring an accountant– Last but not least, one of the biggest mistakes people make is failing to hire an accountant that can help them take care of the financial aspect of their business. Read more about this and the benefits. You can waste a considerable amount of your time and money when it comes to dealing with accounting matters, such as chasing up your invoices, and this will have a negative impact on other aspects of your business. This is why you need the assistance of a top chartered accountant in London who can make sure this part of your business is taken care of.

So there you have it: a number of different steps you can take to ensure your finances are in order at your blogging business! Follow the tips above to make your life easier and to ensure you do not run into any cash flow hurdles along the way.

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