Let’s face it, managing your finances can be somewhat of a struggle. But when it comes to your business, it becomes even more confusing. For your business to grow, you have to get a better understanding of not only your finances but also how they work in the entrepreneurial world.
Here are eight tips to help manage your finances as a growing business.
1. MCG Dashboards
One of the key elements in terms of growing your business and understanding your financials is having the ability to track all of your products effectively. A great tool for this is an FMCG dashboard.
Also known as a Fast Moving Consumer Good Dashboard, this is perfect for anyone who is trying to manage their inventory for any fast-moving product. It allows you to see in a user-friendly interface all of your inventory, turnover, out-of-stock products, and much more.
2. Evaluate Your Annual Budget
More than likely, you have an annual budget that is set up for your business. However, it may be worth your while to revisit your budget more regularly than you think. There may be instances where issues arise in manufacturing and something needs a repair or your sales have increased tremendously.
Reevaluating your budget isn’t always a bad thing. It may mean you have more expendable income, which means you have the ability to hire more staff members. Or you can look into investing in new and innovative opportunities for your company to expand.
3. Protect Your Business Against Fraud
Cyber security is a very real issue for businesses of all sizes. It’s crucial that for you to protect your company’s financials, you have to be set up with the proper firewalls and anti-virus software.
This also includes protecting passwords for any and all platforms such as your e-commerce store, social media accounts, and any other platform that may have financial information associated.
4. Offer Discounts and Coupons
This might seem counterintuitive to give products or services away at a cheaper price. But one of the best client retention tactics is by providing your customers with a reason to stay loyal to you. Offering online coupons and discounts can benefit your revenue long-term.
This is especially true if you are providing something that feels like a tremendous value to the customer but doesn’t drastically impact your overall revenue stream.
5. Keep Personal and Professional Accounts Separate
You may think it’s not too big of a deal to mix business and pleasure funds. Unfortunately, this can get incredibly tricky if you aren’t careful. Make sure to set up different bank accounts for your business that are completely separate from your personal accounts. This includes credit cards as well. It will protect your personal finances from any hardship your business may encounter.
6. Start Talking to Investors
If you haven’t already done so, you’ll want to start the process of presenting your business plan to investors. However, you won’t want to consider just any old investor. These people can be a great asset for your business by helping you grow or stay afloat during difficult times. Do your due diligence and learn as much as you can about your investors before pitching your business plan to them or having to make your final decision.
7. Get Ahold of Your Debt
No business will remain in good standing if they are constantly carrying over debt from one year to the next. Just like you would your personal debt, you want to consolidate and eliminate any business debt you may have incurred. Plan out a repayment strategy with your company’s bank in the most cost-effective manner.
8. Work With a Professional Accountant
At the end of the day, managing business financials for any growing company can be a complicated process. Taxes and payroll alone can be daunting enough. It’s important that you hire a professional accountant to help you throughout the year as your business continues to flourish.
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