Regardless of whether you run a small or large enterprise you need to master the art of managing your funds. This is not something that can be taken lightly and it demands a lot of skills and expertise. Your job is to ensure that the cash flow stays intact. Without money-management expertise you cannot expand or sustain your small business venture. Here are some useful tips to getting started on the path to swift finance management:

  1. To begin with, it is best to hire a professional accountant who can guide you to manage your funds well. In case you are not sure about hiring one, you can determine the accounting services you require, and accordingly, hire a bookkeeper for basic tasks, a public accountant for tax advice, and an accountant with proficiency in handling complicated payroll services and accounting tasks.
  2. You may choose to buy cloud-based software for accounting purposes. These are designed to offer you real-time data so that you can track and update the information at all times, regardless of location. You can access important records and import credit card and bank statements. If for some reason you are not satisfied with the software, you can always change the provider.
  3. To manage your small business funds you need to know ways to read the financial statements. For instance, you must be able to read the profit and loss or P & L statement, cash flow statement showing the operating activities, and balance sheet which offers information about your business’s liabilities and assets. Without updated, accurate financial data you cannot take informed decisions.
  4. Besides reading statements, you have to review these every month. This will tell you how your company progressed in the previous month.
  5. It is important to make a budget at a designated time annually. Without a proper budget you cannot take decisions on expenses.
  6. Apart from creating a workable budget you have to be able to track your expenses every month and quarter. So, costs of inventory, labor, marketing, and sales commissions will keep adding up and if you can review these from time to time, you can make necessary adjustments and changes.
  7. You must make it a habit to follow up on your bills. So, you should ideally set reminders on digital devices that will alert you a couple of days in advance before the bills are due for payment.
  8. You must have clear sales projections to know exactly how much revenue is expected to be generated at the end of a month. Accordingly you will be able to set goals for every week, both for yourself and your teams.
  9. You have to know how to keep your business funds and personal money separate. So, you should opt for business credit cards which will take care of your business-related costs like ravels, subscriptions etc and use this or any payment processing service like PayPal to pay your vendors and to buy raw materials.
  10. You must always set money aside for tackling emergencies. Customer payments can be delayed or you may be forced to bear some unplanned expenses; so, this fund always comes in handy.
  11. You can make it a habit to cut your costs down every quarter. Your job is to identify ways to lower fixed and variable expenses, like marketing costs that do not yield any result or opt for co-working spaces to save office rents.
  12. Finally, you should apply for credit in advance and not when the need is imminent. Banks never work at lightning speeds and you must not wait to apply for loans if you are going to invariably need them.