Take a really good look underneath of any good business and what you will see is finances that are well-managed which can be rather inspiring to other entrepreneurs to stay motivated. It’s a challenge to sustain the working capital while managing the flow of cash in your organization and even in challenging economic times or not, having the right financial plan is a must! Remember to manage your business finance smarter, not harder. This guide will give you the basics into what you need to know in managing your business finance.

Tips & Tricks

Understand the Cash Flow

Understanding your cash flow is the most crucial element for you to manage your business finance. Cash flow can either make or break your business. Revenue and expenses are not always constant and for that matter, understanding and planning your cash flow are needed for any shortfalls or seasonal factors.

Review Financial Statement

Since financial statement is the essence of any business, it has to be reviewed in order for you to know the condition and performance or in other words, for you to know what is really going on with the money in your business! It is important to review your financial statement because “financial statements tell the story of your business and your future fortunes.”

Have an Accounting System

Good accounting system is a need when you want to have a good control over your business finance. Living in this modern world, there are variety of accounting system available on the market that suits the size and nature of your business.  Most common system used nowadays is the manual spreadsheet eg: Excel. This method can be quite tricky but it is very common for most business tracking their financial annually.

Maintain Document Files

Managing business finance involve a lot of paperwork, receipts, bills and invoices. All the accounting documents should be maintained for you to easily trace and retrieve any information if needed. If the documents are maintained properly, there won’t be problems such as mixed information or lost files.

Do Not Procrastinate!

If you want to successfully manage your business finance, always update and keep track of the business financial statements and it is also vital for you to set aside some time be it monthly or weekly to address any serious financial issues that might occurred in your organization.

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