10 TIPS FOR MANAGING YOUR BUSINESS FINANCES

When it comes to managing your business finances, you can learn a lot from those who have been in your shoes. Here are 10 tried and true tips for creating a financial management plan for your business.

1. Make a financial plan

As the saying goes, “if you fail to plan, you plan to fail.” You cannot run a successful business without a plan that addresses how you will handle the finances for everything from taxes and technology to invoicing and inventory.

2. Monitor cash flow

Cash flow is the lifeblood of your business. Ensuring you have the right balance of money coming in and going out is a key factor in whether your company will succeed.

3. Invest in the company

Your business won’t thrive if you don’t invest in it. Growth depends on expanding into new territory, refreshing your inventory, and improving technology and infrastructure.

4. Create and stick to a budget

Control your business’s money, don’t let it control you. A budget can help you maintain and control your business finances by providing a single source of unambiguous truth for how the company’s money should be spent.

5. Borrow wisely

Debt isn’t a bad word. In fact, business loans and lines of credit can be valuable financial tools when used as part of a growth strategy or to supplement cash flow during a slow period.

6. Automate what you can

Financial management software is an excellent investment. Not only does the technology help to ensure your bookkeeping is accurate and up to date, but also can eliminate the expense of hiring a full-time employee.

7. Schedule tax payments

Small business taxes aren’t paid on the same schedule as your personal taxes. Many businesses submit their estimated taxes quarterly. For simplicity, you can also set up tax payments as a standard operating expense and submit them monthly.

8. Have a billing strategy

Unfortunately, collecting from certain vendors can be challenging. Customizing a payment schedule for vendors that are consistently late will help ensure you have the steady cash flow needed for day-to-day operations.

9. Track your finances

Even if you use a third-party financial or accounting services, you need to set aside time weekly to review your books in depth. Knowing what should be in the books will help you quickly identify discrepancies, waste and problem vendors.

10. Plan for the future

Look ahead three, five, 10 years and think about where you want your business to be financially. Create a plan that breaks down each of your goals into incremental, measurable milestones, and get to work!!!!