Running a business can present many challenges – especially when it comes to organizing your business’s finances. If your numbers aren’t accurate or up-to-date, it can impact your bottom line, your growth, and in turn, your success. Fortunately, there are strategies that you can easily implement to coordinate and monitor the finances and day-to-day operations of your business. Check out these 5 ways you can get your company’s finances under control and get ahead.
Outline Financial Goals
To get your business’s finances in order, you first need to figure out what the financial goals are that you wish to achieve. Do you want to double your profits over three years? Would you like for your company to go public? Do you want to expand your company to another country? Spending time identifying your financial goals should be your first step. Then write down all the financial milestones for this coming year, along with the next three, five, and ten-year marks. Once you have an idea of how you want the future of your business to unfold, you can then start to figure out how your business will achieve each of the objectives.
Create a Budget
Once the financial goals have been set and you have an idea of how to achieve them, now is the time to set achievable targets. By creating a budget, you can better plan how your business will allocate money. This will help you get a grip on where your money should be going.
Set Company Standards
An important part of organizing your business’s finances is to set the standards and regulations for partners and/or employees to follow in order to stay within your budget. For example, if you have employees who will expense incidentals during business travel, make sure you outline what the business will cover, how much, and what they are expected to pay out of pocket. Having well defined best practices and company rules will help to ensure your employees don’t go over budget.
Even though many processes have now gone digital, you will still need to work with paper and receipts for many of your dealings. And just throwing your hard copies into a box won’t cut it. You need to set up a properly organized system where you can find what you need quick and simply. Having a filing cabinet and a proper filing system that organizes each part of your business into separate sections – accounting, contracts, HR, operations, sales, etc. – and then by sub-sections, (alphabetically and then by date), will make everyone’s lives much easier.
Track Corporate Spending
When you run a business, you need to have finance software and technology to track all of your corporate spendings properly. All the outputs, such as printing, office supplies, leasing costs, utility bills, expense receipts, and extras like coffee and vending machine snacks, should be accurately inputted and accounted for. Neatly organizing all your expenses and income earned will help you to organize your business finances better.
Let us help you achieve the level of organization that your business needs. At The Beacon Group of Assante Financial Management Ltd., we help leaders and business owners fix their problems to gain more effective processes geared for success. Call us today!