By Bhumika Ramesh
Managing finances while handling a company at the same time can often be a little tricky. Disorganized piles of papers, cheques and various bank statements after a stressful day is well stressful. It’s important to feel in control of our finances. So staying on top of your tasks with a regular schedule is something to strive for.
Consider the followings tips to help you in the process of doing so:
- Review your costs, expenses and income everyday/weekly
Keeping these up to date daily or weekly keeps away unnecessary stress at the end of the month. You wont have to rush to get those monthly statements in order. Record your expenditure and make sure you understand where the money is going. Retain your receipts – it makes this job easier.
- Oversee accounting
This can be done with the help of an accounting software or a first hand accountant. Cloud-based software helps you with daily updates and save time instead of those multiple excel sheets listing out your bills and transactions. Banks usually integrate with these software, and that just makes your job easier – linking accounts to software ensures seamless flow of cash. You can also hire an accountant to keep track of these financial operations. We like Zoho or Dubsado.
- Monthly review of your main financial statements
Sit down every month to track your business projections, cash flow, investments, budget and any other core financial aspect of your company. Instead of rushing over these at the end of the year, a cyclic review is the best route – calculating taxes becomes easier too.
- Developing cash flow charts
Understanding the profits and inputs of your company from a financial standpoint can help you maintain a sort of equilibrium instead of over or under investing in one sector and closely see which part needs more attention so that it can grow. Keeping profits consistent is the main goal – inflow exceeding the outflows. We like doing courses and learning from platforms like Ellevest and Lxmeoffical regularly to keep us updated on Finances.
- Have a payment process in place
One of the regular problems faced by business owners which entail first hand interaction with their clients is not following up with payments. This can cause a delay in recording your weekly or monthly statements. Use small, positive or assertive reminders to prompt your customers to send those payments in. Set up a process and add now the invoicing software you use enables options like reminders for invoices that are due.
- Take note of internal payments
Every thing that concerns your business such as power bills, salaries, rent, subscriptions to various software and other maintenance come under your operating cost. When managing finances, people forget to keep an eye out of these small but crucial expenses. Lookout for hidden costs, apps and programs you don’t use as much and always ask yourself where can you reduce costs. Staying lean is key.
Finally if you haven’t already, be sure to pay yourself. Even if its a small fee at first – you are an integral part of the company too.
Finances can be easy to manage, nothing can get in the way of a well-planned schedule! Staying on top of your finances can save a lot of worries, unwanted work at tax time. It can help you sleep peacefully at night instead of feeling frenzied and and anxious. Hopefully, these tips help you get there.
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