How to Manage Business Finance Effectively (2)
In accordance with previous articles. Managing business finances is very different from how personal financial management works. The management of business finance goes beyond just keeping an accurate book set and balancing business accounts. Management is also to keep you from not spending too much money but still be ready for all expenses.
Effective business finance management is a method to keep company rate or flow in order to avoid leakage that leads to financial loss. Un-managed finances are very risky to 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.
You can follow the following guidelines, so that business funds are always controlled from time to time.
4. Control of business cash flows in the management of business finances
If your cash flow smoothly, then all the obligations to be paid companies can also be met. Most business opportunities will be disrupted all operations, if the existing business cash does not run smoothly. For that, do not forget to always control your business cash flows.
Separate accounting with the cashier. Although you already strongly believe in employees who hold the position of the cashier, it’s good to remain cautious, especially if he also makes financial statements.
Periodically, periodically check receipts to prevent potential manipulation of reports / embezzlement by employees. For example, cash in the report is there, it turns out when audited there is no money (may be used for personal gain).
Another manipulating gap is stock of goods that have been sold, reported unsold. As a result money that should have also disappeared. Therefore, always check the stock of goods on a regular basis.
In addition, prevent there is no habit of staying in employee money. The money the employees take home, tends to be easy to use. Starting from the reason brother sick, urgent needs, to go home.
5. Manage business finances by reducing the risk of debt
As much as possible reduce the risk of your trade pay-ables. Growing business by way of debt, is allowed. But be careful with your debt. An additional debt repayment load in poor business financial condition will only worsen your business situation.
For that, if the existing income can not meet the needs of the business, as much as possible reduce your debt risk. Manage debt risk in the right way.
6. Set aside profit for business development
You are entitled to enjoy business benefits, but that does not mean you can spend it just like that. You still have to set aside some profits for business development. One of the important tasks of financial management is to maintain business viability by encouraging and directing investments into lucrative areas.
If you feel inadequate in managing your business finances well, do not hesitate to ask for help someone else who is more expert. Minimize any risks that could potentially frustrate your business.