Pay more attention to administrative tasks such as people management, cost control, physical structure and business management. When a small business grows, it will naturally increase the complexity of your administration. Employers, who usually do everything practically on their own, begin to feel the need to share tasks, employ more people and have other partners in some cases. In the universe of this activity, the task requires special attention: financial management.
Financial management
We call financial management a series of administrative actions and procedures relating to planning, implementing, analyzing, and controlling the financial activities of small businesses. In simple words: get maximum profit (or yield) with our activities. To start good financial management, the first step is to make an important decision: separate money from small businesses from money from personal expenses (family maintenance). It is a good idea to combine individuals with legal entities in small businesses. Cash to pay and receive is one and this impedes the financial management of small businesses. In some cases, financial management can also be used when we play gambling online in www.onlinecasinodeutschland.com.de and other casino websites.
Three management action fronts
– Daily cash management: managing inflows and outflows of financial resources related to sales, service provision, supplier payments, salaries, taxes, expenses, among others;
– Investment management: occurs when a company decides to expand, modernize, open a new unit, buy new machinery and equipment, etc .;
– Crisis management: a little commented on, but a very frequent subject. This involves renegotiating deadlines with clients and suppliers, debt in financial institutions, protests, rejections, law enforcement actions, and ultimately making difficult choices in difficult times.
Here are some attention points and tips for good financial management from each of the above:
Daily cash financial management
Although small businesses are not miniatures of large companies, it is important that entrepreneurs have little knowledge of various aspects of management, such as costs, prices, human resources, and marketing.
Money management requires time, dedication and knowledge. Small business entrepreneurs are not always dedicated to analyzing the best solutions to financial problems, including, lack of resources to keep company accounts up-to-date. It is still important to know the difference between accrual basis and cash basis. Be careful not to confuse terms and controls.
When we talk about Income, Expenditures, Costs, Profit or Loss, we use accounting terms, generally determined by the accrual basis.
In accounting, as a rule, we have an Annual Income Report based on this scheme, that is, company launches must be recognized in the period in which they occur, regardless of whether they are received or paid. In a simplified way, to arrive at company results, someone has: Income (-) Cost (-) Cost (-) Tax = Result (Profit or Loss).
When talking about cash flow regimes, the correct way is to use the terms in and out (to characterize financial flows) and surplus or lack of cash (for the period analyzed). Hopefully this article can enlighten you.