Financial Management Goals for Your Small Business
By now, we all know about the giant company Apple who were on the verge of bankruptcy but was bailed out by rival company Microsoft. Chrysler is another example.
Through new mergers, acquisitions and better management, these companies have a story to tell.
Why Does Financial Management Matter for Small Businesses?
A subtle management of finances entails more than just keying in numbers into a spreadsheet.
By establishing clear and realistic goals, you are getting close to achieving a sound financial footing.
Below are three financial management goals you can start working on to secure the future of your business:
- Set a Budget
Budgeting for your business requires you to reflect on what happened to your income against expenses last month, three months ago or last year a time like this. Your findings should help you budget for the next three months or even years to come.
Check out detailed tips to get you started:
- Examine your Revenue
- Subtract the fixed costs
- Determine variable business expenses
- Generate your profit & loss statement
- Outline your budget
- Manage Your Cashflow
Whether your small business is struggling or booming, properly managing of your cash flow could favour or crash your survival odds.
Here are ways you can do so:
- Analyze margins
- Manage solvency and liquidity
- Manage Risks
Starting a business can be a daunting experience. So, what can you do about this! More, how can you curb risks associated with running your small business?
Below are points on the same:
- Good record keeping
- Diversify income
- Purchase insurance
- Save! Save! Save!
Are you worried about your small business financial management? Achieving optimal results in terms of goals is realised when you partner with a reliable accounting firm. If your finances are in a mess, Ernest & Co Accountants are happy to help.