Running a small business can be tough. You need to be prepared for financial challenges, both big and small. These can include anything from managing cash flow to taking on new debt facilities or funding growth. Financial management is indeed vital to business success because it helps companies take risks and grow. Thankfully, with the right mindset and tips on financial management from experts like Rani Jarkas, you can take steps to make your company thrive.
Top financial management tips from banking executive Rani Jarkas
- Beat the deadlines
Small businesses are burdened with payment deadlines, from rental fees to taxes and credit card bills. It’s much easier to tell yourself, “I’ll deal with them later,” but don’t forget that missing a deadline comes at an even greater cost.
If you fail to pay your bills on time, you’ll end up with late fees or added interest charges. Not to mention, frequently missing your deadlines can damage your lender and vendor relationships, hurting your business in the long run.
Staying on top of your deadlines is key to managing your finances. Thankfully, you can easily keep track of due dates on your smartphone or computer, setting automatic reminders so you don’t miss a payment.
- Set a budget
Is overspending a problem for your business? There’s a simple solution: set a budget and stick to it.
A budget allows you to limit your spending according to specific expense and revenue goals, providing a guide on how to operate your business. Additionally, for better results, make a habit of monitoring your spending with accounting books and timing your purchases.
- Separate your funds
As a small business owner, you may not think it’s necessary to have a dedicated bank account for your company. But doing this can actually improve your financial management strategy.
This is because combining your personal and business accounts can lead to disorganization, making it unnecessarily difficult to monitor incoming and outgoing funds.
In comparison, using a separate account for your business will help you track profitability and monitor spending, allowing you to discover more growth opportunities.
Looking for more ways to manage your finances and grow your business? Work with Rani Jarkas Financial Services and Investment Firm to find the right solution for your needs!
