If you hate numbers, the accounting side of your business is probably something akin to a nightmare. The mere idea of these spreadsheets sends shivers down your spine. To make matters worse, each month comes complete with a few unpleasant surprises.
Surprise and money aren’t two words any entrepreneur wants to see in the same sentence. Yet, when you’re starting out, they’re a pairing which comes together often. The good news is, you should be able to eliminate that element of surprise over time. The more you get to know your business, the more you’ll work out how to manage your money.
One of the ways you may reach these conclusions is by settling on certain ways of doing things. More often than not, we arrive at these staples through trial and error. But, if your heart is at breaking point, there is a more natural way to find an even keel. All you need to do is play possible processes off against each other to decide which would be better for you. To help you get started, let’s battle the main budget bandits here.
Salary vs. Hourly
Many entrepreneurs start by playing around with wages. Many will question whether they should opt for salaries or hourly payment. Salary pay is fantastic if you want to keep your monthly budget steady while getting the most from your staff. Still, it does have the downside of being a significant commitment every single month. Hourly is beneficial if you’re operating on short shift patterns, or paying lower wages. Yet, there is the downside of having to pay extra for any overtime your teamwork.
Tech subscriptions vs. One-off costs
Every business uses tech. As such, repairs here are another budget issue worth attention. Some businesses swear by managed Services which offer a flat subscription fee for all your technology needs. Others opt instead to pay for repairs on a one-off basis each time they happen. Which options work for you depends on where your business stands. Set subscriptions here are again useful for maintaining a stable budget. The downside with this is that you could pay for services you don’t use. The benefit of one-off options is that you’ll only ever pay for what you need. Still, a big tech emergency could see you clearing your monthly budget in one hit.
Regular ordering vs. buying when you need to
Last, we have the ordering of stock. Some stock should be regularly ordered each month to both maintain costs and also ensure inventory at all times. The downside here is that you may end up with a lot of extra stock you don’t yet need. Others only order as and when they need things. This has the benefit of saving on wasted money some months. It does bring the downside of substantial intermittent costs when you do place an order. That could take you back to the realm of surprise.
So, those are the players. Think it over to decide who wins your business battle.
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