Tools To Manage Business Money

Tools To Manage Business Money
By Maria Cardenas

Introduction
63% of new business don’t survive six years, primary reason is bad cash management.
The cash flow budget is every business’s best friend.
Make a habit of taking care of money matters on a regular basis and it won’t take you a great deal of time.

Steps to follow

Sending out your bills and fast collection
Reviewing your finances regularly
Looking ahead
Getting a backup source of capital
Saving

Sending out your bills and fast collection
Try to speed up customer orders by having them fax their orders to you.
Send your invoices the same day goods are shipped, even if the bill isn’t due for 30 days.
Indicate on your invoice when payment is due, and specify the penalty interest for late payment.
Consider using a bank “lock box” to collect your mailed checks from customers around the country.

Reviewing your finances regularly
At least once a month, but preferably once week or quickly every day, look at your overall figures, such :
Accounts payable
Accounts receivable
Income statement
Checkbook balance
Cash flow
Credit Card Balances

Looking Ahead
When looking at your books, don’t just look at the present, look at the past and then look toward the future, projecting income and cash flow.
The error many people make is to focus on their businesses profit only losing track of everything else. It’s a big mistake to ignore the possibility of a cash flow crisis.

Getting a backup source of capital
The best time to get a loan is when you don’t
need one. Take the time to get a line of credit
from a bank.
Set your credit terms carefully. The need to extend credit to customers is a fact of life for most businesses, but it is important to set clear limits.

Saving
Every business has income fluctuations. The best way to have cash when you need it is to put some away when you’ve got it.

Conclusion
This are some tips that’ll help us to run a business efficiently and productively. It’s important to consider everyone of this aspects so we can get to have the profit that we expect, always thinking about the needs and the requirements of the customer and the personal of the company.
Taking responsibility of all these things will make of us a good Business Manager.

Bibliography
www.smartcompany.com.au
www.business-opportrunities.biz
www.powerhomebiz.com