How To Manage Business Financial For Those Who Started A Business

How To Manage Business Financial For Those Who Started A Business.  As a business actor, of course you want the business you are building to grow bigger. So if you want your business to thrive, you have to pay attention to so many things. One of them is paying attention to and managing business finances well, which is a determining factor for the sustainability of your business.

In order to be able to manage business finances well, of course you need to learn and know how to manage finances. Here are 5 ways to manage business finances for those who are just starting a business.

How to Manage Business Finance for Beginners

For those of you who are just starting a business, it is very important to pay attention to cash flow, capital turnover, asset development, as well as profit and loss. Do not let because of lack of attention in this case, you actually experience losses. Here are some ways to manage business finances for beginners that you can try.

• Separating Business and Personal Accounts

The fatal mistake that is often made by novice entrepreneurs is to make one between family, personal, and business accounts. In fact, it would be better if you are ready to start a business, then you also prepare a special account that will be used as a place to enter the money generated from the business you run.

If you do not separate your business and personal accounts, it is not impossible that you will experience difficulties in managing finances. Another dangerous thing that can happen is that you are actually money that should be business capital for personal needs. As a result of mixed financial management, you run out of capital and eventually the new business starts to fail before it has time to grow.

• Making Special Bookkeeping for Business

The next thing you need to pay attention to in managing business finances is making books. The function of this book is as a complete record of daily expenses and income, as well as the number of assets and debts owned.

With bookkeeping, you can find out the advantages and disadvantages of your business. In addition, if there is a loss of money or an error in the calculation, it will be easier for you to find it.

• Paying Bills On Time

Paying taxes is an obligation as an Indonesian citizen. As a citizen as well as an entrepreneur, of course you also have this obligation to fulfill. Do the reporting and payment of taxes according to the rules that have been set. In addition, if you have a business capital loan, installments, or other business bills, make payments on time. Late payments will usually incur interest and penalties, and this will obviously hurt your business.

In managing business finances, you need to prepare petty cash, a predetermined amount of cash, to finance daily operations within a certain period of time. Don't forget to record the details of every use of money from this petty cash.

• Setting Up an Emergency Fund

How to manage business finances that is also important for you to pay attention to is having an emergency fund. This emergency fund function will only be felt when your business is experiencing an unexpected event.

As an entrepreneur, of course you cannot predict when an adverse event will occur. For this reason, an emergency fund is needed as a preparation so that if it happens, you will not spend your business capital and profits that your business has worked so hard to collect. It is even better if you also allocate funds for insurance as an additional safe protection for your business.

How to manage business finances in this article is the most basic thing that you really need to prepare and do as well as possible.