My name is Kimberly Engwicht and I’m a proud Bundjalung and South-Sea Islander woman living on Yuggera country. I’m a mother of two and the Creative Director of K-Rae Designs – a digital illustration company.  
 
Running my own business for the past six years has been both amazing and challenging. Being a creative at heart, I’ve had to learn new skills to make sure that my finances are always in check.

Here are my top five financial tips in running a small business: 

1. Think about where to invest and save

In my case, to be able to do digital art, I invested in a tablet and a stylist. Yes, it may be a lot of money upfront, but these are essential tools to run my creative business.

2. Use separate bank accounts for business

This just makes it easier to differentiate business and personal expenses. Having another account to put money aside for taxes also helps to not get caught out at tax time.

3. Understand your business expenses and how much to charge

I first started by using an excel spreadsheet to keep track of business related costs. Knowing your fixed costs and how much a product costs to make and the market for your product allows you to set the right price.

4. Consider subscribing to an accounting software

In my case I use Xero to send invoices and record transactions with ease. I also use a plug-in which pulls all of my Shopify sales and fees straight into Xero, which reduces the admin burden. 

5. Stay on top of cashflow

I try to reconcile in Xero weekly to keep track of unpaid invoices and so I’m not left with thousands of tasks for the end of financial year. 

Like every article on TomorrowMoney, this is not personal financial advice.