If you’re running your own small business, you’re a massive risk-taker. As you are well aware, there are many challenges and risks to deal with when running a business regardless of size. You’re also aware that many of those who went down the same path didn’t do so successfully. That said, some challenges are a given, and you’re more than ready to deal with them. However, there are other challenges that keep you awake at night, and these are ones that consistently demand attention and energy. More often than not, this challenge revolves around your finances.

That said, fret not! Today, we’re going to help you by discussing the common financial problems small business owners face and how you can solve them:

1. Cash flow

The most common problem small businesses have is the cash flow problem. Let’s face it, even the largest companies go through this problem at some time. As a small business owner, you may have a hard time forecasting the monetary situation to determine if you can afford to pay the bills or if you need to take in more customers. The cash flow is also a problem that may be sensitive to some and need to be immediately taken care of.

If you’re unsure about how to overcome the cash flow problem, you need to talk to a financial adviser. However, to not overwhelm yourself, you may want to talk to someone specialising in small businesses.

2. Accounting

Many small business owners who run a business in modern times have to deal with accounting. They need to know how much money they have coming in and out. In addition, they need to keep track of their expenses and compare them to their income. This may be both a tricky and time-consuming process.

Fortunately, if you have proper accounting software and a skilled accountant, you’ll be able to save yourself from the headache. However, if you’re still going to go with the manual way of accounting, make sure to prioritise it as much as you can, as you may want to focus on other aspects of your business.

3. Taxes

Even if you’re not a big fan of accounting and finance, you know that you have to deal with taxes. Taxes are, after all, unavoidable. You need to work out how much money you’ll have to pay in taxes and how you can lower them to a minimum or even eliminate them. Here, you can consider talking to a certified tax professional or an accountant to help you out.

Relying on an experienced financial adviser will help you explore different options regarding taxation and find the ones that will work best for you. However, if you want to go through everything by yourself, you can refer to official websites and publications or read a book or two on taxation.

Conclusion

As you can see, there are many different challenges when running a small business. As a small business owner, you’re likely to face a lot of these challenges, and there may be times when you’ll have to deal with them all at once. However, you need to know that with the right knowledge and expertise, you can overcome these challenges like a pro. Plus, remember that you’re not alone. Financial services are out there and ready to assist you in your endeavour. As such, if you find that you aren’t cut to manage your finances, hire experts to deal with it for you!

BarrettStacy Accounting is a friendly and approachable team of accountants and bookkeepers in Bristol ready to help companies stay on top of their financial needs.  If you need accounting and bookkeeping help, reach out to us today!