When starting a small business, there are indeed many challenges and trials in the early stages. This is a test so that we can maintain the business or not. If anyone has never experienced this then it is a lie.
This can be in the form of a challenge to capital, so beginner entrepreneurs keep paying attention and managing your business finances well. Even more so if this is your first time in running this business. Keeping a complete record of finances starting from cash flow, daily turnover records, weekly to monthly turnover along with business purchase records is also an important thing for you to do.
However, not a few beginner business people often make mistakes by ignoring important aspects as we are currently discussing. According to CB Insights research, one of the main factors that cause a startup to fail is a lack of funding. That way, we need a strategy to manage business finances for every new entrepreneur.
If you already have this, it can help you to keep trying and keep going smoothly and stably. Here are some smart tips for managing your business finances so that your business can continue to grow.
Managing Business Financial
- Separating Personal Money And Business Money
This is an important problem that you must do in order to maintain the financial stability of your business. Until now, there are still many cases of business people who still mix their personal finances with their business finances. So that they can’t manage their finances properly.
Some business people are also known to use their business finances to meet their personal and family needs in large numbers, making it difficult to know or calculate. If this is done continuously, this can trigger losses that will be experienced by the businessman.
Of course this can make your business capital decrease and decrease. Even the benefits will not be seen. If this is allowed, it does not rule out the possibility of the business being bankrupt.
- Separating The Accounting And Cashier Sections
This is no less important than the previous explanation, because separating the accounting section from the cashier section can be useful to minimize the risk of fraud (Fraud). In this discussion, the cashier can function as the party who receives money from the sale of products, be it other goods or services.
For the accounting department itself, it should not be handled by the cashier, but should be given to someone else who already understands this part of accounting. Because if the cashier and accounting are held by one person, there will be a greater risk of loss. This happens because this person can manipulate financial statements in your business. So to prevent this, do the separation between the two parts.
- Make General Planning
All of you who are currently owning a business or business, then you can make a general plan that can or contains any program that must be done for a long period. Then the program can be divided into several short periods such as weekly and monthly periods as well as quarterly.
For this you also have to need careful and detailed calculations of the programs that you have created. This is like calculating the amount of funds needed and equipment and determining the time to run the program.
- Make Financial Targets
How to manage business finances for beginners, it will not be too late. Because you really want to try, it will not be in vain and can be done at any time. Even though the business has been running for a long time, but your financial targets are decreasing or increasing, it is useful for you to differentiate or find out which business you are running is successful or failed.
Maybe this is still unknown to all new business entrepreneurs. Your first step needs to determine how much income and expenses you get during the year. This must be well structured then you can immediately make a target that you want to achieve more efficiently in the form of a simple scheme.
- Develop Business With Profits
Profits are a form of income that is proof that a business is developing and is able to provide satisfactory results. You can use these advantages to meet your personal needs, but it would be better if some of these benefits were used as additional capital for your business. That way, the capital or business that you are living can increase in size and can increase profits from before.
If you are able to do things like the above and are able to practice them, then it’s no wonder you will be able to manage your business well so that you can make the business successful and profitable. This will bring pride to all of you.
In essence, every entrepreneur must have ambition and must have the conditions to have better business targets. Thanks You.