When Yahoo CEO Marissa Mayer announced early last year that Yahoo employees would no longer be permitted to work remotely, it sparked a worldwide debate over the merits of home based work. In particular there was a discussion about the benefits of face time versus flexitime in business.
However, the small business sector has for a long time experimented with work life balance, with hundreds of entrepreneurs starting home-based businesses in Australia each year.
In fact, the recently released First Class Accounts Small Business Barometer 2014 revealed small business owners placed a greater emphasis on non-financial motivators for owning their own business. In Part 4: Flexible outlook for small business, 47.8 per cent of small business owners said the ability to create a better work life balance and work flexibility was the most satisfying aspect of running a business.
Operating a home-based business has a number of attractions. It can reduce hefty overheads such as a commercial lease, increase work productivity and offer staff a more flexible approach to working.
However, working from home can also be isolating, with low physical interaction among co-workers contributing to reduced company culture. It can also bring distractions if you share a busy home with a partner and/or children.
For business owners, keeping on top of finances is arguable one of the most significant challenges of home-based working. However, financial management is a critical role in monitoring and maintaining business health.
Below are some tips on how to stay on how to keep on top of the books when running a business from home.
- Maintain the divide – from keeping all personal documents and business documents separate through to avoiding doing domestic work during business hours, it’s important to maintain the divide between personal and work life by treating your business like a business and not confusing it with your personal life.
- Business planning – developing a business plan and budget are essential for a successful business, allowing you to plan and forecast revenue streams, identify expenses and give you something to track business performance against.
- Monitor business health regularly – once your budget is established, regular monitoring of sales and profits and losses is necessary to evaluate the health of your business and identify factors impacting business growth.
- Utilise the experts – sometimes it pays to seek expert help when it comes to financial management, allowing you to concentrate on other important aspects such as sales and customer service or quality of work.
A bookkeeper can help you manage the finances of your home-based business. For more information on First Class Accounts Small Business Barometer 2014 click here or Contact us on 1800 082 066.