The sole reason one would start a company or business is so to make money. Of course, in the running of the business, there will be some losses incurred, but as long as the business makes profits at the end of the day, it is worth keeping. How you handle the finances in the business is a key determinant of how well your business runs.
· Know your financial worth
It is hard to manage something that you have no idea about. If you do not know how much your business brings in, it is harder to know how to manage the money. You cannot distribute what you do not have.
· Have managerial skill
If possible, have some knowledge about accounts. This will help you in keeping up with the inflow and outflow of cash. If the math does not balance, you won’t be in the dark when someone is trying to explain. If you cannot handle the accounts, hire an accountant who is trained. There are limited company accountants around, so make sure you get one who has the professional skills to run and handle your finances.
· Have a trusted credit service giver
It is quite hard to run a huge business on the income that it brings. At some point, you may need to expand your business and will need to borrow some money. Get a trusted source. It can be a bank or a credit service giver. Agree on the mode of payment that will not make your business collapse by paying the loan.
· Have advisors
These are the people who have been in the business for long and have experience in the accounts field. They will give you advice on how and where to invest and where not to. They will also advice you on how to improve your business and which products to invest more into and which to give less consideration.
· Keep records
Financial records are an important and trusted guide as to how the business is running. Get a trusted group of people to do this for you. It is important to review your records as frequently as possible. You can keep the books yourself if you can. If possible, have accounting software, with which it will be easier and more reliable to follow your finances.
· Have a savings account
It is important to have a bank account. This helps you save some money for the development of the business. This should be a separate account that is used purposely for saving incase of any developments or emergencies occur. Insuring your business is also another way of ensuring that your company’s finances will be safe.
It is not such a hard task to manage the flow of cash in your business or company. Ensure you employ some of the points above and it will be smooth.