Managing your business finance is the key to a successful business, the growth or downfall of your business will be determined how well you manage your business finances, the following are ways of which a business person can manage his/her business finances. Be sure to conduct your own research when it comes to your business finances. It’s also wise to contact a professional CPA accountant.
1. Open a bank account it is the easiest way to manage your finances since you can easily monitor your cash using bank statements,you are also sure about the safety of your cash since it is in safe hands, it is wise to open a savings and have a petty cash account to manage your incomes and expenses respectively.
2. Record keeping this will ensure that all incomes and expenses are recorded for future reference, it also keeps tracks of all your creditor and debtors ensuring that all debt is settled on both sides, this will also help you know how much profit or loss you are making on your business hence it will help you make wise decisions when it comes to your expenditure,record keeping is the best way of ensuring that all cash in the business is accounted for.
3. Using a financial plan this will help you to plan in advance financially of things to do in future so as to help you prepare for these activities financially, for example you might need to purchase a few assets for the expansion of your company, having a financial plan will keep you informed of the date and things to do when that date arrives, it will also inform you of how much money you need to set aside for that project that way you will be prepared financially when the time arrives.
4. Progress payment this will help you reduce your expenses by slowly paying for them in advance when you have the cash, for example you are supposed to pay your workers a certain amount of money before the end of the month, a wise business man will start to set a side little by little the required cash so that when the deadline arrives you will have the full amount required to pay the workers that way you wont have have any trouble trying to pay their salaries all at once because at times it can be stressful
5. Be Discipline it is a big part in ensuring that a businessman sticks to a code of conduct that will not allow him/her to misuse their business finance, for example keeping away from drugs and alcohol.