Money Management Tips for the Self Employed from Small Business Accountants Melbourne Part 2
Last week, we at m.a.s accountants, the small business accountants in Melbourne, touched on a few tips on how to manage your finances if you are looking to become or already is self-employed. This week we are continuing and will finish up on our series of tips on money management to the self-employed.
1. Emergency Fund is Important
While most businesses will set away a portion of their income and saving as an emergency fund, setting this fund aside is even more important if you are self-employed because you cannot rely on anyone else for funding other than yourself. Furthermore, if your household accounts and your business accounts are still under one account, things could get messy should anything unfortunate happens. However, always treat this emergency funds as your last resort. Treat it as your safety net when unforeseen difficulties come around, such as extended period of no reveue, lawsuit filed against you, or when your business is pulling its last few strings before it has to close its doors.
2. Plan Ahead
This means that you need to set out a proper business plan before venturing into self-employment, while you can also start planning for retirement. Do you think it's too early to start planning or even thinking about retirement? It can never be too early. This applies to the teenagers and to any seasoned businessmen, as being planned ahead for retirement means that you have a future financial management in place and you will not feel as rushed when it finally comes around. Similarly with business planning, with early planning, you will know how your business will function, how it will attempt to earn success and how the revenue and expenditure flows
Nevertheless, with all those that have been written by us at m.a.s accountants, the small business accounting services in Melbourne, you will ultimately also need some discipline in order for all your plans to work and for your self-employment business to be sustainable and successful. Although, we understand how busy you can be when you're self-employed and how much help you will probably need from a business accountant in Melbourne.
if you feel like your money managements are starting to slip away from your hands, contact m.a.s accountants now. We are the Melbourne small business accountant.