How to organize the finances of a business as an entrepreneur?

Finances are one of the most important pillars that companies have, it is what keeps them operational and its good management is essential for their operations and to boost their growth. Likewise, poor administration can result in nascent organizations having to close their doors.

According to the report “Radiografía del emprendimiento en México“, two of the main reasons for failure of SMEs are lack of liquidity and poor management. Both aspects can go hand in hand, and can be solved by applying the correct strategies and the appropriate plans for the correct administration of SMEs.

How to carry out a good business financial management?

If your business is young, you want to boost its growth or you are going through some difficulty related to your company’s finances, take these tips into account and apply them.

Have a plan and budget

Something essential for the administration of SMEs is planning.

You need to classify the expenses that are priorities and regularly monitor your company’s budget, so that you can identify capital outflows and inflows. By keeping a detailed record of these elements, you will be able to know what the debt ceiling is in case more raw material, personnel, machinery or office equipment is needed.

Besides, it is advisable to allocate a percentage of the income for a savings fund, which allows you to face any situation that affects the business.

Check the cash flow

Every beginning of the month, track what you had left in cash and in bank accounts, from the previous month. Then, compare the outflows and inflows of capital, as well as the balance, with what you actually have in the bank and in the box. In this way you can avoid discrepancies and keep finances in order.

You can also calculate the projected cash flow, so you know your future expenses and anticipate unforeseen events.

Manage invoices on time

Keep the accounting up to date. It is very important that you invoice all sales that are made in a timely manner. Remember that issuance delays make the collection process longer, which may mean liquidity problems in the future.

This will also give you better control of the money the company has.

Keep a calendar for financial management

Regarding the debts of your company, set specific deadlines to cover them. It is important that you do not wait until the last moment to pay everything you have pending, as well as not getting into more debt before settling other commitments that you may have at the time.

Remember that not paying financial commitments on the corresponding dates will affect your credit history.

Do not mix business expenses with personal expenses

Do not make the mistake of believing that all a company obtains are profits, it is dangerous to take money from the petty cash box to incur expenses that do not belong to the organization, since this generates budget imbalances that in the long run can compromise finances.

Lean on financing

Seeking financing is not something that should be done only when a company is in the red, on the contrary, it is good to consider this option when the numbers are positive.

If you have a young company that is doing very well, there are perfect options for you, such as online loans from Pymes Capital.

This type of financing is ideal for small and medium-sized companies that seek to grow and have good planning.

If this is your case, apply online for your loan and in a couple of hours you will have an answer. At Pymes Capital you have your allies.