Accurate financial management is one of the most important jobs for business owners and managers. Profit, cash flow, budgets – these aren’t just buzzwords, they’re the lifeblood of a company that determines success or failure, growth or collapse. There are many things to take into account when managing your company’s finances. Below, we have our top five tips for managing your corporate finances, including our top pro-tips.
Don’t Neglect Everyday Operations
The daily operations of your business should never go unchecked. Budgets, annual and quarterly planning, and monthly cash flow keep your business running. Timely bill payments and accurate payroll for employees are also essential, everyday financial processes that cannot be missed.
Pro Tip: Set up good habits to ensure accounts receivable, accounts payable, and budgeting is accurately tracked, monitored, and paid promptly.
Have a Solid Billing Strategy
If you are a business owner, chances are you have had a client that makes collecting money a challenge. Part of managing finances means managing cash flow, so timely invoicing and efficient collection practices are crucial in keeping your finances healthy.
Pro Tip: If you have that one customer from whom it is always a pain to collect, it might be time to think outside the box or get a little bit creative with your billing strategies. Discounts for early/timely payments?
Invest in Future Growth
A business needs a proper financial plan to ensure future growth and prosperity. Some future goals could be expanding a product line, moving into a new market, or attracting high-quality talent. Regardless of your future goals, setting aside savings or planning for large purchases or costs will ensure smooth transitions as your business grows.
Pro Tip: If you aren’t looking five to ten years in the future, you probably are not planning sufficiently. The businesses that look far to the future are the ones that succeed.
Plan for Taxes
The only certain things in this life are death and taxes, right? Taxes are inevitable, so tax planning, limiting liabilities, and keeping accurate records help alleviate surprises on quarterly or annual taxes.
Pro Tip: Find a tax planning professional that understands your industry, your monthly cash flow, and your goals to ensure you are making the best decisions for your business.
Don’t Forget About Reporting
Often overlooked but absolutely vital, reports make sure you can see and evaluate your business’s financial health. Stakeholders want regular reports on their investments regardless of the structure and size of your company.
Pro Tip: Look at expenditures and your ROI. Be aware of where you’re spending your money and where you’re receiving a reasonable rate of return. Sometimes the most effective sources of revenue are easy to overlook.
ABCO Group offers peace of mind by providing the tools you need to succeed with your finances in account management, including payroll, AP, and AR, allowing you to focus your talents on what truly matters to your business. We have achieved tremendous success in many fields of business over our years of service. Give us a call or visit our website if you need help implementing any of these tips.