Last Updated on Mar 27, 2020 by James W
One of the hardest things about running a business is keeping the finances in check. Those number sheets will keep CEOs awake at night worried about the next invoice. If you’re to run an effective business, you need to get your mind off the money. You’re the creative head of the company. It’s your job to spot new opportunities, and dictate the direction of the business. You can’t do that while you’re desperately worried about the balance sheet. Today, we’re going to show you how to effortlessly manage the company finances. Mastering this will leave you free to take on more productive tasks.
Check in once a week
While it’s true that you need a certain distance from the worries of money, don’t neglect it completely. The CEO still needs a basic understanding of what the cash flow looks like. That’s why we suggest taking half an hour every week to check in with the finances. Sit down with your accountant or assess the spreadsheets, and get a good sense of how things look. It will help you make the right decisions in the coming week, and you’ll always know where you stand. It’s a great way to keep your business running smoothly.
Hire a bookkeeper
Most of the entrepreneurs we know are highly creative, inventive people. They don’t always have the patience to sit down, and deal with the money. That’s where a bookkeeper is invaluable. They’ll keep strict careful records of the incomings and outgoings of the business. Small companies don’t necessarily need a full-time accountant, so try using virtual bookkeeping instead. They’ll keep track of everything, and prepare the accounts for tax. Nice and simple.
Pay on time
It sounds like an obvious suggestion, but you’d be surprised how rarely this happens in business. Paying late leads to all sorts of additional charges and interest, which will throw your accounts off balance. It also throws deadline dates off course, and your finance sheet turns into a mess. Even if you’re short on cash flow, prioritize your outgoing payments. Don’t let your poor money management damage the entire reputation of your business.
At regular intervals, take the time to look at the deeper financial movements. Where are your major costs coming from? Where is the biggest money coming in? By understanding this, you can slowly tweak your business to function better. If you can see that a certain marketing technique has triggered a huge income, you can focus on that. If a particular product is drawing in big money, highlight it.
Cut anything that’s not working
By diving into the accounts like this, you can also see what’s not working. To stay on top of the company finances, you need to cut anything that’s not working quickly. One of the first rules of business is never waste money. As soon as you can see a trickle of finances that aren’t effective, cut the stream. It’s that simple. But, you’ll only realise this with regular checks and audits.
There you have it, folks! The simple way to manage your finances, without stressing out! How do you keep on top of your accounts?