6 Ways To Manage Business Finances
If you are currently preparing or even have started a business, you should note that one of the keys to business success is financial management.
Understandably, almost all important aspects of business are related to money. Starting from the procurement of raw materials, rental of business premises, transportation, promotion, employee salaries and many more. All need to regulate and control correctly and systematically.
Effective business financial management is a method to maintain the pace or flow of corporate funds so that there is no leakage that results in financial losses. Finance that is not managed properly is very risky for the smooth running of business finances. Although the company managed to market its products very well, if financial management is done poorly, the possibility of failure is very likely.
To Do List in Managing Business Finances
Separate personal / family accounts from business accounts in managing business finances.
This is the first to-do list that you must pay attention to. Many business people neglect this important problem so that personal money is often mixed with company money.
Even though with account separation, you are easier to measure business growth. Immediately open a new checking account intended specifically for business.
Determine the percentage in business financial management
This method will help you manage business finances in accordance with the predetermined portion at the beginning of the business start.
Don’t forget to allocate monthly expenses, including your salary. Although this is your own business, allocate your salary according to your responsibilities and needs. If you are forced to borrow business money, record it as kasbon / debt that must be returned later.
Make bookkeeping to manage business finances
Business is not sufficiently managed based on memory. There needs to be complete records. Ideally you have financial statements such as rubies / earnings and balance sheets. But if it is not yet possible because it is still a new business, at least you can first make a report in and out of cash (cash flow).
Every day, match your money balance with your notes. Thus you can control all financial transactions. Both in terms of income, expenses, and debt and receivables owned in the company. Besides that, neat bookkeeping will also make it easier to evaluate business development.
Make a projection of the cash flow. With these projections, you will know when to receive money, when to spend money. You can also check whether the company still has cash or not. With cash flow records, we can anticipate and look for ways before a minus occurs.
Control business cash flow in business financial management
Separate accounting with the cashier. Even though you have a great deal of trust in the employee who holds the cashier position, it’s a good idea to be careful, especially if he also makes financial statements.
Periodically, check your receipt periodically to prevent potential manipulation of reports / embezzlement by employees. Therefore, always check the stock of goods regularly.
In addition, prevent the habit of staying in the employee’s money. The money that the employee takes home tends to be easy to use. Starting from the reason your brother is sick, urgent needs, to go home.
Manage business finances by reducing the risk of debt
As much as possible reduce the risk of your business debt. Developing a business by means of debt, is indeed permissible. But beware of your debt. Additional debt repayment charges in unfavorable business financial conditions will only worsen your business situation.
For that, if the existing income can not meet business needs, as much as possible reduce the risk of your debt. Manage debt risk in the right way.
Set aside profits for business development
You have the right to enjoy business benefits, but that does not mean you can just spend it. You still have to set aside some of the profits for business development. One of the important tasks of financial management is to maintain business survival by encouraging and directing investment into profitable fields.
If you feel inadequate in managing business finances properly, don’t hesitate to ask for help from someone who is more skilled. Minimize any risks that have the potential to frustrate your business.