We have joined forces with Starling Bank to help bring you help and financial advice as part of our Business Survival Guide. In this first guest blog, Starling will run through some tips to help you manage your business finances.
This is an uncertain time for everyone, for businesses great and small, old and new.
If you are using this period to continue to make plans for your new business, the Starling Bank app can help. Click here to learn more and open an account.
Track Your Costs
The most important tip to managing your business finances is to ensure that you have a clear picture of your costs.
When tracking your finances, there are three questions which you should have oversight of:
● What are your largest outgoings?
● Where is your income stream is coming from?
● Is your spending this month is higher or lower than your monthly average?
Keeping track of the answers to these could help you meet your key payments, cut down on non-essential spending, and monitor your income streams to avoid nasty surprises.
With a Starling business account, your income and outgoings are automatically categorised in the mobile app under the Spending Insights tab. Here, you’ll be able to see how much was spent on a variety of categories, from Admin to Equipment, as a percentage of your total spending, and as a stand alone amount.
Use Digital Tools
Now more than ever, we’re seeing the benefits of technology which is helping us all navigate through this unusual time. And when your business takes off, investing in digital tools can also really help you streamline your finances and admin. At Starling, we work with a number of different partner brands - via the Marketplace - that offer a wide range of products and services to help our business customers.
Among the most popular are the accountancy software partners. Xero, Quickbooks and FreeAgent all provide clever accounting software which connects to your real-time bank transactions. This makes managing your taxes, invoicing, and sorting bills and expenses automatically a breeze, saving you a lot of time and hassle along the way.
There are also plenty of other app-based brands that offer time-saving products at competitive prices. From project management tools from Underpinned, to business insurance for invoices from Nimbla. Why not use this time to do your research on which Marketplace partners might be helpful to you?
We created the Starling Bank Marketplace to help our customers manage a variety of their financial tools, directly from their app. Being able to keep track of all of your financial tools and products from one place will minimise the risk of you missing something, giving you peace of mind. Plus, you can rest assured in the knowledge that all of our third party partners have been thoroughly vetted - so you’ll only be working with the best.
Keep Money Organised
Organising your finances into separate pots of money can really help you plan ahead when managing your budget. Starling helps business owners do this via our ‘Goals’ feature, which enables account holders to customise their different pots to fit their individual needs, for example: ‘Tax’, ‘Wages’, ‘Stock’ and ‘Marketing’ are all popular categories.
You won’t be able to spend that money unless you move it back into your main account. So, you can keep your finances organised and visible.
Open a Dedicated Business Account
If you’re starting your own business as a sole trader, there’s no legal requirement to open a business banking account. However, by opening a dedicated business account will make it much easier to keep your finances organised. You will also look much more professional to your clients or customers if they can make a payment to your business name, rather than your personal account.
When choosing your business bank account, you should think about factors such as transaction fees, withdrawal fees, admin features and what level of customer care you will have available to support your business along the way.
A massive thank you to Starling Bank for writing this blog post to help give advice on how to manage your finances.
We are obviously a massive believer in doing things the opposite and we love how Starling have been shaking up the traditional approch and what it means to be a bank.
Come back next week for tips on budgeting your money and making the pennies stretch further!