There are some great advantages for single moms in becomng your own boss and running your own business.
Not having to answer to anyone is an obvious plus point, as is being able to arrange your working schedule the way you want it to be for the best work/life balance.
However there are drawbacks too, and one of those is the need to multitask and do work that can sometimes be outside of your comfort zone.
One example of this is the financial side of things. Some people find looking after the money matters of their business easy and interesting, whereas others find anything to do with organizing finances to be a struggle.
The important thing is that any business must be built on solid financial ground, so there’s no getting away from the fact that you need to make sure everything is looked after properly in this area.
We all have a basic understanding of budgets and the balance between outgoings and income, because it is all part of basic everyday life. When you run your own business, however, it goes far deeper, and there are also rules and regulations that need to be followed for dealings with HRMS (for you Brits) and the IRS in the US.
Cash flow, invoicing and raising capital also all come under the heading of financial affairs, so a knowledge of basic business money concepts is essential if you are going to be able to stay on top of things and know the state of your company at any one time.
A general overview doesn’t need any specialized skills, but simply an understanding of terms and phrases that are used and how they all fit together in a practical sense. Anyone can pick up these things via a range of self-learning tools, and for those who want to get more involved, there are plenty of educational courses that can give a basic but workable grounding in accountancy.
Help at hand
For most small businesses, time really is money, and the core functions of the work, along with marketing and other essentials in the mix, can take up a great deal of man hours.
This is why some commercial concerns fall into difficulty when the financial side of things is left to last on the ‘to do’ list.
Thankfully, there is a simple way to avoid potential pitfalls without having to make substantial outlays by employing accountants full-time.
The perfect answer for many small businesses lies with contractor accountants (in the UK) who provide all the expertise of a professional accountant for the needs of small businesses and sole traders. The beauty of using this kind of arrangement is that you only pay for what you need doing, however large or small the job.
Knowing which areas of your business you can make savings on and cut back outlays is part and parcel of being a successful entrepreneur. Obviously, there are also areas such as financial matters that can be far better to outsource, but this doesn’t mean they have to come at too high a price.