With even some of the world’s biggest companies having gone bankrupt, it’s only natural that fledgling entrepreneurs worry about their money management.
So what do you do? How do you ensure that your business spending doesn’t get out of control and that your company stays afloat?
This short guide will show you some of the best ways to handle your spending management so that you minimize the risk of bankruptcy.
Here’s what you need to know about money management for your business.
1. Use a Corporate Debit Card
Rather than using a credit card for your payments, you should always use a corporate debit card. This ensures that you’ll only spend what you have on your account and never get into debt.
With corporate debit cards, you can often earn rewards that have discounts for future purchases. If you make the switch to corporate debit cards, you’ll soon see that you’re more disciplined with your spending habits.
2. Use a Money Management App
Another overlooked method to curb business spending is to use a money management app such as Bento. You can click here to learn more about it.
With this app, you’ll get to keep track of your company’s finances. It’s one of the easiest ways to manage your company’s financial health.
With this money management app, you can also request a corporate debit card in the form of a virtual card. This lets you make payments online using virtual card numbers.
This is one of the fastest ways to start taking control of your finances and ensure that your company stays afloat.
3. Use Digital Services When Possible
Wherever you can, you want to use digital services to replace your physical services. This is often the easiest way to reduce unnecessary costs.
For example, rather than renting out an office space, you can consider allowing all your staff to work remotely. You can use a virtual address for your company’s official address.
Forgo snail mail altogether and only use email and instant messaging. Focus on selling digital products that don’t require manufacturing or storing inventory.
4. Use Freelancers
Rather than hiring staff at all times, you want to focus on working with freelancers. You can negotiate prices with them and only have to work with them on particular projects.
If you hire an employee, you have to pay them even if there isn’t an abundance of work available. You’ll also have to pay for additional benefits, which aren’t always easy for small startups.
That’s How to Handle Your Money Management
Now you know how to handle your money management and reduce your overall business spending.
Start by using a corporate debit card rather than a credit card. This ensures that you spend within your limits and never get into debt.
The next step is to use a money management app to keep track of your business spending. You should also opt for digital services over physical services as these are usually cheaper.
Make sure you also hire freelancers as hiring employees isn’t feasible for the initial stages of a startup.
You can find more great money management tips on our blog! Check them out next.