The Best Way to Manage Anti-Loss Business Finance
No one in this world wants their business to lose. To prevent your business from experiencing losses, it is very important to know how to manage your finances well. In this article, we will discuss the benefits of managing finances for businesses, how best to manage finances so that their business does not lose. Listen to the end.
Benefits of Managing Finance for Business
In business it is very important to manage finances. Indirectly, managing finances when doing business will prevent the business from losses and possibly bankruptcy. Managing finances when doing business can also provide many benefits.
One of them is to be able to maintain cash flow and prepare a capital structure. The company's cash inflow and outflow must be continuously monitored because it is closely related to income and expenses. In cash there is also capital that must be issued when carrying out production or operations.
So that if you manage your finances carefully, you can certainly keep the cash flow from becoming a minus which results in losses. Indirectly, maintaining cash flow can also maximize the company's finances and profits.
How to Manage Finances for Business
As discussed earlier, managing finances for a business is not just about preventing losses. There are many other benefits that can be felt from managing finances for business.
Then how to manage good business finances? The following are some ways to manage finances for business so that the flow of finances remains healthy.
1. Track All Expenses with Details
It is very important in managing finances in business is tracking all expenses and managing books properly.
It is very important to keep all evidence of income and expenses incurred during the course of doing business. To help do this, you can use various accounting software or hire the services of a good accountant.
2. Making Financial Projections
Making financial projections of what will happen is very important from how to manage finances in a business. You can do this by making spending plan posts for the next one period.
In this way, various financial priorities will be obtained in a certain period. So you can anticipate and avoid unexpected expenses outside the plan.
3. Directly Manage Invoices
Invoices are an important element when doing business. The only thing to do with invoices is to take care of them right away. Immediately send an invoice after making the shipment of goods. On the other hand, immediately follow up on invoices when you get shipments from vendors.
For sent invoices, prepare a template to check when payment has been made. As for the invoices received, don't forget to check the suitability with the PO number from the company.
Benefits of Managing Finance for Business
In business it is very important to manage finances. Indirectly, managing finances when doing business will prevent the business from losses and possibly bankruptcy. Managing finances when doing business can also provide many benefits.
One of them is to be able to maintain cash flow and prepare a capital structure. The company's cash inflow and outflow must be continuously monitored because it is closely related to income and expenses. In cash there is also capital that must be issued when carrying out production or operations.
So that if you manage your finances carefully, you can certainly keep the cash flow from becoming a minus which results in losses. Indirectly, maintaining cash flow can also maximize the company's finances and profits.
How to Manage Finances for Business
As discussed earlier, managing finances for a business is not just about preventing losses. There are many other benefits that can be felt from managing finances for business.
Then how to manage good business finances? The following are some ways to manage finances for business so that the flow of finances remains healthy.
1. Track All Expenses with Details
It is very important in managing finances in business is tracking all expenses and managing books properly.
It is very important to keep all evidence of income and expenses incurred during the course of doing business. To help do this, you can use various accounting software or hire the services of a good accountant.
2. Making Financial Projections
Making financial projections of what will happen is very important from how to manage finances in a business. You can do this by making spending plan posts for the next one period.
In this way, various financial priorities will be obtained in a certain period. So you can anticipate and avoid unexpected expenses outside the plan.
3. Directly Manage Invoices
Invoices are an important element when doing business. The only thing to do with invoices is to take care of them right away. Immediately send an invoice after making the shipment of goods. On the other hand, immediately follow up on invoices when you get shipments from vendors.
For sent invoices, prepare a template to check when payment has been made. As for the invoices received, don't forget to check the suitability with the PO number from the company.
If you use accounting software such as Accurate Online, you can easily and quickly create invoices and customize purchase invoices and sales invoices.
4. Separate Personal and Business Accounts
The most important thing about how to manage finances for business is to separate personal accounts and business accounts. Separating personal accounts and business accounts will make it easier to track the company's cash flow.
So that it can be seen which expenses or income are obtained for personal or business matters. It is also included in the 10 basic principles of accounting.
4. Separate Personal and Business Accounts
The most important thing about how to manage finances for business is to separate personal accounts and business accounts. Separating personal accounts and business accounts will make it easier to track the company's cash flow.
So that it can be seen which expenses or income are obtained for personal or business matters. It is also included in the 10 basic principles of accounting.
5. Track Personal Loans for Business
After separating your personal and business accounts, also track personal loans for business. The point is to check the personal finances issued for business purposes. Do not let personal money mixed into the business is not returned and even trouble yourself.
6. Pay Bills First
The existence of a bill does not mean that the profits obtained will decrease. Especially if the bill is related to business operations, it means that the bill is what makes the business operate. However, as soon as the bill is received, pay the bill immediately without waiting for a long time so as not to be forgotten and even make the bill pile up even more.
7. Stay thrifty
Staying frugal even though you already have income from the business you run is a very good way of managing finances. The income earned from the business is certainly not always smooth every month. Therefore, restraining yourself by remaining frugal can be a good way to be in case you run into financial problems in the future.
8. Minimize Travel Costs
There is nothing wrong with going out of town, especially when it comes to dealing with business. However, what needs to be considered is to keep travel costs to a minimum.
This is in line with maintaining frugality for the sake of business financial health. Organize the trip well, rent accommodation that is comfortable but still economical, will make a business trip less expensive.
Or the best solution is to use online communication applications that are booming lately such as Zoom, Google Meet, or Skype which make it easy for you to interact wherever and whenever you want without distance limitations.
9. Be Careful When Opening Branches
Opening a branch elsewhere is indeed very tempting. Moreover, by opening a branch means that the business that is being run is experiencing success.
However, the decision to open this branch should be made carefully and wisely. Not infrequently, many companies are forced to close branches again because they do not provide profits and even increase the burden of expenses.
The problem that usually occurs when you open multiple branches is that your financial control is not fully maximized at each branch. The best solution is to use accounting software that has multi-branch features to make it easier for you to monitor the finances and inventory of all branches in your business, one of which is Accurate Online.
10. Renting (Sometimes) Is Better Than Buying
Buying goods for production or operations is important. However, have you ever thought that renting can sometimes be better than buying?
After separating your personal and business accounts, also track personal loans for business. The point is to check the personal finances issued for business purposes. Do not let personal money mixed into the business is not returned and even trouble yourself.
6. Pay Bills First
The existence of a bill does not mean that the profits obtained will decrease. Especially if the bill is related to business operations, it means that the bill is what makes the business operate. However, as soon as the bill is received, pay the bill immediately without waiting for a long time so as not to be forgotten and even make the bill pile up even more.
7. Stay thrifty
Staying frugal even though you already have income from the business you run is a very good way of managing finances. The income earned from the business is certainly not always smooth every month. Therefore, restraining yourself by remaining frugal can be a good way to be in case you run into financial problems in the future.
8. Minimize Travel Costs
There is nothing wrong with going out of town, especially when it comes to dealing with business. However, what needs to be considered is to keep travel costs to a minimum.
This is in line with maintaining frugality for the sake of business financial health. Organize the trip well, rent accommodation that is comfortable but still economical, will make a business trip less expensive.
Or the best solution is to use online communication applications that are booming lately such as Zoom, Google Meet, or Skype which make it easy for you to interact wherever and whenever you want without distance limitations.
9. Be Careful When Opening Branches
Opening a branch elsewhere is indeed very tempting. Moreover, by opening a branch means that the business that is being run is experiencing success.
However, the decision to open this branch should be made carefully and wisely. Not infrequently, many companies are forced to close branches again because they do not provide profits and even increase the burden of expenses.
The problem that usually occurs when you open multiple branches is that your financial control is not fully maximized at each branch. The best solution is to use accounting software that has multi-branch features to make it easier for you to monitor the finances and inventory of all branches in your business, one of which is Accurate Online.
10. Renting (Sometimes) Is Better Than Buying
Buying goods for production or operations is important. However, have you ever thought that renting can sometimes be better than buying?
Especially for purposes that are not repeated or infrequent, renting goods or tools can certainly reduce expenses. Renting goods will also avoid the cost of equipment maintenance if you have to buy it.
11. Finding Loans is Good
Many scorn entrepreneurs who seek loans because many think borrowing money is the same as being in trouble.
Even though there are many things that can be done from seeking loans, one of which is to develop a better business. Borrowing money from a bank or other party is good as long as it is used for productive things in business.
12. Prepare an Emergency Fund
An emergency fund is a fund that is prepared for emergency events that occur when doing business. The existence of an emergency fund is important so that the business can continue to run even though conditions outside are not good.
To create an emergency fund, set aside a portion of the income you receive and never use an emergency fund for any purpose unless it's really an emergency
13. Educate Yourself About Finance
It is no less important in managing finances is to educate yourself. Never tire of learning about things like financial reports, including how to read financial reports. By being able to read financial statements, business owners can find out what is in their financial statements.
14. Monitoring and Measuring Performance
As a business owner, it is very important to monitor and measure the financial performance of the business. This is still related to the previous one, namely educating yourself. By educating yourself, a business owner can properly monitor and measure the financial performance of his company.
11. Finding Loans is Good
Many scorn entrepreneurs who seek loans because many think borrowing money is the same as being in trouble.
Even though there are many things that can be done from seeking loans, one of which is to develop a better business. Borrowing money from a bank or other party is good as long as it is used for productive things in business.
12. Prepare an Emergency Fund
An emergency fund is a fund that is prepared for emergency events that occur when doing business. The existence of an emergency fund is important so that the business can continue to run even though conditions outside are not good.
To create an emergency fund, set aside a portion of the income you receive and never use an emergency fund for any purpose unless it's really an emergency
13. Educate Yourself About Finance
It is no less important in managing finances is to educate yourself. Never tire of learning about things like financial reports, including how to read financial reports. By being able to read financial statements, business owners can find out what is in their financial statements.
14. Monitoring and Measuring Performance
As a business owner, it is very important to monitor and measure the financial performance of the business. This is still related to the previous one, namely educating yourself. By educating yourself, a business owner can properly monitor and measure the financial performance of his company.
15. Developing Business from Profit
Don't forget to grow your business using the profits you earn. As a business person, of course, getting the maximum profit is the target to be achieved.
One way is to turn profits into something productive, such as business development. Do not immediately spend the profits earned for personal purposes.
Conclusion
Managing finances can make business activities avoid financial problems that lead to losses and bankruptcy. As a business person, it is very important to know how to manage finances well. Some of the ways above can be practiced to keep business finances healthy.
If you have difficulty in making financial arrangements manually in bookkeeping, it's a good idea to use accounting software to minimize the occurrence of recording errors that lead to unwanted things in your business.
There are many accounting software that have affordable prices and are easy to use, even if anyone doesn't understand accounting in depth, one of which is Accurate Online.
For only 200 thousand rupiah per month, with Accurate Online you will get features that suit your business needs, such as recording expenses and income, managing multiple warehouses and branches, calculating asset values, automatic transaction reconciliation, multi-user, automation of more than 200 financial reports. and much more.
Don't forget to grow your business using the profits you earn. As a business person, of course, getting the maximum profit is the target to be achieved.
One way is to turn profits into something productive, such as business development. Do not immediately spend the profits earned for personal purposes.
Conclusion
Managing finances can make business activities avoid financial problems that lead to losses and bankruptcy. As a business person, it is very important to know how to manage finances well. Some of the ways above can be practiced to keep business finances healthy.
If you have difficulty in making financial arrangements manually in bookkeeping, it's a good idea to use accounting software to minimize the occurrence of recording errors that lead to unwanted things in your business.
There are many accounting software that have affordable prices and are easy to use, even if anyone doesn't understand accounting in depth, one of which is Accurate Online.
For only 200 thousand rupiah per month, with Accurate Online you will get features that suit your business needs, such as recording expenses and income, managing multiple warehouses and branches, calculating asset values, automatic transaction reconciliation, multi-user, automation of more than 200 financial reports. and much more.