MANAGE YOUR BUSINESS FINANCES LIKE A PRO AND WHAT YOU NEED TO START THE FINANCIAL MANAGEMENT BASICS

 

No one starts a business with the intention of failing, but if you don’t create a comprehensive financial plan, your business will struggle from day one. Managing your business finances effectively takes commitment, attention to detail and self-discipline, but the result are worth the effort. If you are ready to take the next step in your financial management journey.

Now that most people are aware/ they know some of the pitfalls to avoid when managing their business’s finances. There are seven essential basics you’ll need to get started.

1. Personal financial statement

Is a list of your personal, net worth, income, and expenses. You will need this if you apply for a business loan.

2. Balance sheet

A point in time look at your business’s assets, liabilities and equity that together provide a snapshot of your company’s financial health.

3. Income statement

Is a record of your business’s profit and loss over a given period of time.

4. Accounting ledger

Is a physical or electronic repository for your business balance sheet and income statement transactions.

5. Cash flow forecast and statement

Are documents that help you to track and plan cash coming in and going out of the business so there are no surprises.

6. Accounting support

Whether you hire a CPA, bookkeeper, online accounts receivable/accounts payable (AR/AP) service, or all of the above, putting your finances in the hand of a professional frees you up to grow your business.

7. Tools/software

If you decide to take a DIY approach to your business finance management, a software solution, such as Auto books, can help you automate many of your AR/AP and bookkeeping tasks.