There is no denial in the fact that all the industries out there have gone through a vast phase of transformation and there are many things that have contributed to this amazing transformation of all the industries. If you compare the industries of a couple of decades ago with the industries of the modern era then you are going to find huge differences in both. Well, one such change that you might have witnessed is the increasing number of small businesses. But do you really think that all those businesses that pop up in the market and increase the competition are able to become successful? Well, the simple answer to this question is a big NO.
So, you have come up with a unique business plan on the entire planet and have all the things ready to jump into the highly competitive yet exciting world of startups? But you need to take care of all the departments of your business on your own and one such department which needs to be given proper time and attention is the financial department.
The financial management of your business should be a near to perfect practice because it doesn’t matter how good you are at marketing or sales, if you can’t manage your finances properly, then your chances of success as a startup will drop down to almost zero.
There are many important things in finance which you should know and if you want to give up on your job and start earning from your business as the boss then this article is made for you only.
1. Mater the art of managing your cash flow
One of the main reasons for the failure of most of the startups is they run out of cash. Cash flow is the top financial metric which you should learn and master before even thinking of starting a business. With better cash flow management, you will have a clear goal and milestones for your company and you will be able to plan in a better and more resourceful way.
There are many small business owners out there who don’t take their financial management and accounting seriously and they consider them just as a formality. But this is one of the biggest mistakes that you can make while running a business. You must start using powerful accounting solutions QuickBooks hosting as this will give you a better overview of the financial situation of your company and thus you will be able to keep track of your cash flow and make decisions to improve it in many different ways.
2. Open a business bank account
Your separate business bank account is one of the most important tools which you will use in order to manage your business finances. You should open a business bank account from the moment you start having transactions for your business. This will help you to minimize the confusion and keep your business account separate from your personal account.
If you are not going to open a business account then you will never be able to understand the current financial situation of your business since both your personal finance and business finance will get mixed in a single account. Thus, you will never come to know what are the expenses of your business, how much profit your business has made and what financial decisions need to be taken in order to improve the situation.
3. Track all your spending
With a new startup, expenses will be coming from every direction like the way in which arrows come from every direction in a war. Yes, you can hire an expert to keep track of your spending, but that won’t be a budget-friendly solution and therefore you should use accounting software solutions like QuickBooks cloud hosting. It is not only useful in managing your cash flow, but it acts as a saviour when your tax time rolls around every year.
There are many small businesses out there that never track their spending and this is one of the main reasons why most of the businesses out there are not able to have financial stability. Well, you will need to avoid such type of practice as tracking spending can help you in many different ways.
4. Build and conquer financial goals
Along with marketing and sales goals, you should also build and achieve financial goals. Monthly, weekly or even daily revenue goals can keep you on top of your finances and allow you to make minor adjustments for conquering the bigger financial goal which can be of a year or 10 months.
If you are not going to set clear financial goals then you will never be able to make your employees understand the importance of what you want to achieve and since all the major decisions that you will be taking in your company will be based on finance, it is necessary to have clear financial goals. For example, you can have a financial goal of making your profit reach 170% of what your current profit is and then you can work towards conquering your goal without any issue.
5. Go for the cloud
If you are using accounting software then it’s great but if you are using a cloud accounting solution then it will surely be better. Cloud accounting solutions like QuickBooks cloud hosting is very feasible and can be easily afforded by even most of the startups.
There are surely many accounting solutions out there that can be used on the cloud platform but you should always go with the very powerful and useful QuickBooks Enterprise hosting as this is the most used cloud accounting solution in the modern era, especially by small and medium sized businesses.
If you will take proper care of the finances of your business then the finance will take care of your firm for sure. This is why, you must use all the financial tips mentioned above and then you will be able to fuel the growth of your business.