Money management as a TECH entrepreneur. 3 tips
Many entrepreneurs are obsessed with their primary goal of selling products or services. Everything that comes with it… is often less fun, even though it’s part of the job. Managing money is one of those things that many entrepreneurs don’t particularly like. Don’t get us wrong. everyone likes to earn money and see paid invoices. But making sure your numbers are in order when the taxes come in or looking for defaulting debtors is less fun. In this article, we give you three tips to make money management easier.
1. Get a good accountant with TECH experience
You might be thinking, “Accountants are expensive, I’ll just do it myself.” and that is obviously your right. But accountants have the best software available so they can do their taxes faster than you can. Why spend hours trying to get your paperwork in order… when you can turn it over to someone else who knows exactly what(s) he/she is doing?
What’s more, a good accountant can let you know if you’re spending too much, if debtors are late paying your invoices, or if they’re not paying them at all.
2. Make sure your bills are paid on time
It’s no fun if your accountant tells you that you have one or more unpaid invoices. Liquidity is extremely important and you have to pay your bills too. That’s why it’s a good idea to have a reliable debt collection agency (Dutch. recruitment agency) on speed dial. They can track your debtors and even find out who is hiding behind difficult corporate structures. A debt collection agency always knows what to do in every situation. They can send a bailiff, they can apply for your debtor’s bankruptcy, they can apply to seize your debtor’s assets (Dutch. confiscation)…
Working closely with a reliable debt collection agency can greatly help your business. You don’t have the stress of having to hunt down your debtors yourself, and you know that the agencies are reaching the limit to get your money. Make sure you don’t waste time when you notice your invoices are being ignored. if another business collection agency files your debtor’s bankruptcy, you may be the last in line to be paid.
3. Know how much money you need to save for the future
Everyone likes to make money. Just make sure you’re saving enough for when you need to pay your taxes (luckily, your accountant can help you with that), but also make sure you’re saving for your long-term goals.
Many young businesses fail because they don’t have a good business plan. If you have a solid business plan, you know how much money you need to make, for example, to expand and move to another location or hire new employees. Make sure you write down your goals and always have plenty saved up so you can survive a rough move if something happens. For example, the pandemic had a big impact on many businesses, so it’s good to have some money saved for emergencies.
Good luck in your business.
