Just because the saying ‘Jack of all trades, master of none’ exists, does not mean that you can’t handle multiple things at once. After all, multitasking exists to remind us that it is human nature to simultaneously engage our senses in several activities. If that sounds too flat then let’s think of a clown who is trying to juggle multiple balls while riding a unicycle. Sounds like that’s a lot of things they have to manage but if they pull each string off perfectly then the result is a performance that’s bound to amaze people. The same kinda goes with handling multiple business finances at once. It may sound terrifying, overwhelming, deadly even! But, quite exciting too. And, when you know how to apply the right strategies, it becomes rather fun too.
That’s a lot of gobbing but now let’s get to the meat because now we will be discussing how you can stay on top of multi-business finance without losing your mind (or profit margins).
Different Accounts for Each Business
You would never put the cash you’d be burning tonight at the club and your life savings in the same purse, would you? (let’s hope not) The same also goes for your businesses as well. Open separate bank accounts for each entity so that income, expenses, and tax obligations don’t wobble up and become one hybrid creature from some 80s horror flick. This prevents confusion and also makes tax season not look like a, well, 80s horror flick. To sum it up, managing finances through integrated platforms that link to multiple bank accounts is gonna make your monitoring job no duck hunt.
Delegation Is the Deal
When you run multiple businesses, delegation is not just a quick hack but rather an essential lifesaver. Don’t go into your 30s with a ton of grey hair because you spent the last 5 micromanaging everything. Instead, focus on outsourcing routine financial tasks like bookkeeping or payroll to trusted professionals or digital software. Platforms like WaveApps highlight how outsourcing can free up your time for high-value tasks. The more you delegate to better people the more time you get to focus on the bigger picture.
Accounting Software with the Support
It’s the 21st century so don’t sit around balancing the books in your favorite lecture-coated journal with a quill pen and perhaps even an abacus. For seamless financial management across multiple ventures, invest in accounting software like QuickBooks, Xero, or Wave. Make sure, your software has features like invoicing, expense tracking, and financial reporting across multiple businesses, or else it’s gonna be as good as a sloth on sleeping pills. Wait, you’re a spreadsheet veteran? Cool! But please, trust us when we say that automated accounting software makes your life (and business) easier.
Let the Cash Flow…Flowing
If cash flow is the lifeblood of a business then a poor flow is pretty much the vampire for it because it’s gonna suck the business dry very quick. Each of your business needs its own set of tactics to maintain positive cash flow, whether that’s through setting clear payment terms, automating billing, or offering early payment incentives. Monitoring cash flow properly makes sure you can cover daily expenses and invest in growth. Also, it can help you forecast any future bumps on the road.
Don’t Go Overboard with Budgets
Dreaming big is certainly cool but when you’re running multiple businesses, perhaps keeping your feet on the ground is a better idea. Allocate funds for each business based on its income potential and expenses. A well-planned budget isn’t just a financial blueprint, it’s like constructing a solid foundation for a building so that it doesn’t crumble in just about any quake, or in financial terms, not drive your business into a fiscal ditch. Sticking to a budget would surely help you with maintaining financial discipline and eventually avoid overspending and guess what, that’s best for business!
Get a Fractional CFO on board
If you’re feeling like your finances are getting out of hand and you’re seeing stars in broad daylight then a Chief Financial Officer (CFO) could be your knight in shiny armor. A full-time on is breaking the bank? Gone are those days because fractional CFOs are here to save the day. These financial pros work on a part-time or project basis, helping with financial strategy, forecasting, and decision-making. It’s like having a handy financial advisor on demand without probably having to sell off one of your businesses to afford them.
Be Tax-Savvy
Paying taxes is like having to wake up on a Monday morning, no one loves it but you just have to do it unless you are looking for some time behind bars. Set aside money from each business for tax obligations and consult with tax professionals to make sure you are 100% compliant. Platforms like Enty remind you that planning for tax obligations in advance can prevent you from looking under the rugs at the last minute to find some funds. Always stay alert regarding tax deadlines for each of your businesses to avoid those pesky late fees.
Plan for Growth (But Don’t Overstretch)
We get it—you want all your businesses to take the world by storm but hopping too fast also has its consequences. A solid financial base is certainly required to accelerate your growth road map efficiently (and safely too). Scale your businesses at a pace that your finances can keep up with, and always have a contingency plan in case hell breaks lose or you get kaboom with unexpected financial hits. As you grow, don’t forget to revise your financial strategies to make sure you are on track and they all are always aligned with your business goals.
We would say managing multiple businesses and their finance is already some Olympic-level sport but if you can be a model professional athlete you know how to properly integrate the methods we’ve just waffled about for the last few minutes. Also remember, business is not static neither is your knowledge regarding it. There will be hurdles down the line and new experiences that are gonna broaden your horizons and teach you to do better. That’s what makes doing business risky but fascinatingly worth it as well. Now, let’s enjoy that clown juggling balls on the unicycle.