Tips for Managing Business Finances with Apps

Tips for Managing Business

Tips for Managing Business: Business and finance are two things that are closely related. When having a business, ideally it is also accompanied by good financial management. Business financial management is able to make you more aware of financial conditions so that in the future the challenges that may arise can be overcome properly. Problems in business may occur in the financial aspect, for that if you want to start a business well, as much as possible to learn about basic business financial management.Tips for Managing Business Finances with Apps

Tips for Managing Business Finances with Apps

Understanding Business Finance

In business financial management, there are various activities such as management, planning, storage of funds, and so on. Financial management can make business run more smoothly with a directed system. For this reason, financial management cannot be arbitrary, you may need a financial management system using a financial planner or company financial application that can help you.

The Importance of Managing Company Finance

Finance is an important thing in a company, because it is one of the strong foundations in moving and developing. Imagine if a financial administration business is not going well. Instead of the company growing, the result is that employees’ salaries are not paid, cannot buy raw materials, or there are layoffs. It takes neat, really reliable and responsible financial management techniques. The following is the scope of financial management and methods of managing finances for companies.

Tips for Managing Business Finances with Apps

Scope of Financial Management

Broadly speaking, there are two approaches in the scope of this financial management. The conventional approach, the system applied in this approach is about money management only. Then there is the modern approach, this approach is wider in scope than the conventional approach. Financial management with a modern approach includes strategic financial decisions, investments and dividends. In connection with the allocation of company funds, both income and expenses. In order to be efficient in order to get more profit, the scope of financial management can be drawn as follows.

1. Investment Decision

Investment decisions are closely related to assets. This includes buildings, land or where the company is located and the means of production. In addition, it can also be in the form of securities. Investment decisions become one of the important things because from there the company’s assets can become more valuable assets. A good investment of funds will result in long-term investment for the company. Of course, for the benefit of the company and the welfare of employees.

2. Funding Decision

Funding is generally related to where the company gets funds or capital, either from inside or outside the company. The existing funds will be used for operational costs and subsidiary expansion. Policies here, of course, must be carefully considered for what they are allocated. Then to get new capital whether by debt or other means. This funding decision must be adjusted to the company’s ability, so that it does not cause harm in the future.

3. Asset Management

The thing that is no less important in the company and cannot be ignored is asset management. Both visible assets and intangible assets related to human capital. Without a mature policy regarding assets, companies may not be strong in the financial sector.

Methods of Managing Finance for Companies

The methods and functions of finance itself include several things, namely:

1. Neat Planning

Financial planning is the main pillar in managing finances. Having a good plan will minimize unnecessary expenses. The company’s cash capability must really be known in detail, so that the plans are made according to the company’s needs. Neat planning, simplifying company performance.

2. Financial Budget

From good and neat planning, you can make a financial budget to suit your needs, efficiently and effectively. But before that, it must be checked first, what the company needs so that the budget is really effective.

3. Financial Report

Financial reports are very important so that the plans and budgets issued are appropriate and do not deviate from the plan. To get big profits, financial reports must be made correctly and regularly. From this financial report, it can be seen the ups and downs of the rate of funds in the company. That way you can find the right solution to get the maximum benefit.

4. Reduce Risk

It is not easy to reduce this risk. Because good financial planning does not mean without risk. However, with a clear and good arrangement, it will certainly minimize the risk. Sometimes, at the beginning of opening a business, dare to take large amounts of debt, not necessarily the results are as expected. This is a risk that inevitably occurs and must be faced.

For example, by offering a profitable business cooperation. Of course, with a clear agreement, so that profit sharing will not be an obstacle in the future. Financial management in the company must consider all the risks that exist during the company’s operational activities

5. Financial Supervision and Audit

After all processes are carried out properly, then there is a need for regular financial supervision and audits. The benefits of this supervision and audit are to see whether it is in accordance with the procedures implemented by the company or not. With supervision, anything that looks deviated can be returned to the applicable regulations. You can also avoid fraud. Here you must know in advance the differences between internal auditors and external auditors, to the duties of auditors.

With good financial management methods and strategies, the company will run according to the rules and as expected. The profits obtained can be optimal and automatically the welfare of employees can be increased.

Advantages of Business Financial Management

If you have the ability to manage business finances, you can control your financial condition safely and comfortably. You can set your own spending limit that will not affect the company’s cash.

1. Maximizing the Use of Funds

Company activities with the use of funds can also be monitored properly. You can also use company or business funds more optimally, so that the funds spent can be more responsible.

2. Healthier Capital Structure

When you get or have business capital, you can also create a healthy capital structure. A healthy capital structure means that profits are greater than debt or debt does not interfere with the company’s cash.

3. Safer Investment

If your business is running smoothly and progress is seen in a better direction, then the funds you have can be invested to get other benefits. This is of course supported by good management.

Business Financial Management Goals

There are several goals for making good business financial management, including:

1. Maintain Cash Flow

The entry and exit or cash flow of this company must be checked periodically. This is intended to avoid unexpected expenses that result in company losses. For this reason, business cash is spent to buy production raw materials, HR salaries, company operational costs, etc.

2. Capital Efficiency

In every company there is usually a target to be achieved with capital that has been managed efficiently. Efficient business capital is capital that is quite a lot but is used wisely so that business activities can run smoothly.

3. Optimize Company Wealth

If the company is big enough, the company’s wealth must always be optimized, how do you do it? The trick is with good asset management, the distribution of maximum profits to shareholders will certainly improve the company’s performance and shareholder confidence in your business.

4. Ensuring the Company’s Survival

Company decisions that relate to business competition can affect the company’s performance. For this reason, business financial management must be neatly arranged so that the company’s survival can continue to be stable.

5. Regulating the Capital Structure

Business financial management is not easy. Because income or capital must be us according to the budget of each ne. This capital structure requires people who understand how to manage business finances. After the capital is systematically arranged, then evaluate the results whether it is appropriate or not. So, it is very important to study business financial management.

Tips for Managing Business Finances with Apps

How to Manage Business Finances?

Business finances can be better if you are able to manage the expenses. Here are tips on how to manage business finances.

1. Record All Expenses

The first thing you should do is record all expenses or transactions that occur in your business. By recording all expenses, then you will know where your money is going. For that, try to make it a habit to record all the details or small things from your business transactions. If needed, keep all receipts showing any purchase transactions that you make in connection with the business. In this way. You will slowly get us to managing business finances more regularly.

2. Create Financial Projections

What are financial projections? A financial projection is a plan or shadow in the future for expenses that may occur in your business. You can see future plans for example in the next 1 month what you need. Try to check the stock of items needed. Whether there are products that are reduc  or just stuck. Financial projections are not only appli  to production but also to promotion. For example. If you need money for promotion so you can make financial projections for the next few months.

3. Monitor Financial Cash Flow

The way to manage business finances that is often done by reliable business people is to monitor cash flow. A simple way to monitor cash flow is to separate money for business or personal purposes. Generally. Small and medium business actors often find situations like this where the money from the business is unknowingly taken for personal gain. So, this can affect the cash flow that might occur in your business. Cash flow must be monitor carefully so that when distributing profits can be precise. For example. If you make a profit. Then the money from the profit can be divid into operational expenses. Business emergency funds. Etc.

4. Business Development with Profit

Business profits that are quite large are indeed very tempting to use immediately. However, keep in mind that you can turn this business advantage back to make a profit. You can use profits for business capital again so that your MSME business can run smoother. It is better not to use the profit for personal gain, but save the profit first for reuse if you need funds for production and promotion.

5. Discipline Paying Bills

You must pay the bill on time in order to minimize the fines that may be obtain. Always note the date of payment of the bill. Make a checklist for the bills that have been paid. If you have to spend business money to pay a fine. Just imagine how much revenue is deduct  from the cost of this fine?

6. Pay close attention when you open an offline store

If you plan to open an offline tofo as a form of business expansion, then you should consider wisely. Generally. When opening a branch or offline store. You ne a lot of funds so that the financial control of the business must be controll properly. You certainly don’t want offline stores to close in the end because there are many obstacles that occur in the field?

7. Looking for a loan can be an option

If you feel the need to take out a business loan. Why not consider a few things. For example. Fintech for capital loans must be licens by the OJK. Capital loans have low interest rates. Loans must also be trust so that in the future you will not feel disadvantag. Some MSME businesses also make loans as business capital. This is natural because indeed in running a business you definitely need a large capital for a big business.Tips for Managing Business Finances with Apps

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