If you’re running a newly established business, and just getting to grips with being a business owner, it’s only expected that there is to be a learning curve and that there can be some bumps along the way.

However, the place where you really don’t want to tolerate any bumps is with your finances. A few mistakes with your money can be enough to put you in dire straits, so here we’re going to look at some of the most common mistakes small businesses make with their money, and how you can better handle it.

Not separating your finances

A lot of new business owners being as a sole proprietors, rather than a limited company because, in part, it’s a lot easier to set up that way. While you may not legally have to separate your finances as you would for a limited company, it’s still recommended you keep your personal and business finances distant. Otherwise, it’s all too easy to end up spending the money that should be invested back into your business. Pay yourself a salary, too, so that you don’t get tempted to treat your profits like a paycheck.

Failing to keep your books

You want to make sure that you are always on top of your financial situation. If you’re not effectively tracking your cash flow, then it can be difficult to understand how much money your business really has. What’s more, lacking records can make it easy to not notice that you might be spending too much on certain resources or expenditures. Working with teams like LINK Books can make sure that you’re much more aware of the financial reality of your business. It can also help a lot when it comes to tax season, which leads us to the next point.

Not preparing for taxes

You have to do your taxes each and every year. As such, it shouldn’t be something that sneaks up on you by surprise. By working with bookkeepers, as mentioned above, you can ensure that you have all of your financial records ready to be able to complete your tax returns.

However, you should get to know the important dates in regard to your taxes, so that you’re able to better start preparing ahead of time, rather than having to get all of your tax work done within a week or two before the deadline hits. Save yourself the headache.

Leaving invoices unchased

If your business makes money not by direct payment from your customers, but by sending invoices out to clients, then had better be prepared for some clients to be later in paying than others. Invoicing software like Square Invoices can help you better track and send reminders to clients, but you might want to include late payment clauses in your contractors to incentivize them to pay on time, as well.

As a business owner, some degree of financial savvy is expected of you. Keep the tips above in mind, do your own learning, and find professional partners who can keep you safe.