I must confess I don’t have much life experience with regards to the topic of ‘Financial Tips for Business’, considering this I decided to take some advice from those more qualified and have relied heavily on my research skills.There were many tips I came across while scouring various news articles, business columns and financial websites, too many in fact to mention in one blog.
So I decided to list those that seemed most prevalent in my research.
- Goals: Financial goals inform what to strive for, focus on and what expectations are. Goals enable everyone to work collaboratively to achieve success, which allows companies to realize more financial achievements. It is important to keep financial goals measurable and realistic. Timeframes, values and targets are measurable components to include.
- Budget: A budget helps keep track of cash flows, increase reserves, minimizes unnecessary spending, gives you a clear plan for all income and expenses and should be updated regularly.
- Cash Flow: A cash flow analysis is an integral part of operating a successful business; it enables a business owner to understand gains, losses and identify financial concerns as they arise in order to resolve them early.
- Debtors: Implement procedures to avoid late payments by Debtors. Make your credit terms and conditions obvious from the start. Issue invoices promptly that are clear and accurate. An automated credit management system will help to keep track of debtors’ accounts.
- Creditors: It’s important that you meet your obligations; failing to meet deadlines can incur fines and interest. These are unnecessary costs that can be avoided with planning.
- Savings: When times are tough, it is vital to have the comfort of knowing you have savings to rely on. Take the time to grow, strengthen and secure savings.
- Support: Choose the right finance partner, establish a good relationship with them from the start and if you think your bank isn’t providing you with the best deal on your short-term borrowing, overdraft or investment facility think about alternative arrangements.
To summarize: a prosperous and profitable business needs planning and organisation in all aspects. If however, you like me are not a business owner remember as an individual we can also use many of the financial tips listed above in order to achieve our own financial freedom.
“A good financial plan is a road map that shows us exactly how the choices we make today will affect our future.” Alexa Von Tobel