In this competitive business environment, owning an SME is a great experience, but it is also risky. You must deal with an endless stream of finance, tech, and administrative issues that require most of your attention. Managing your SME’s finances is one of them.
You must not only save enough money to cover your expenses, but also require adequate funds and a business intelligence platform to streamline your finances. If you’re an SME owner and looking for a better way to manage your finances without depending on your team, here are five tips to get you started:
- Track Your Payables
If you don’t know when your accounts payable, business loan payments, or credit card payments, are due, it can cost you late fees, affect your business credit score, and damage your relationship with lenders. Use a business intelligence platform that reminds you of your pending payables, so you don’t fall behind.
- Stay Updated on Your Expenses
Many business owners have multiple bank accounts, however there’s no streamlined transactional history that can help you track your company expenses every month. Using a dedicated business credit card with an integrated expense management software helps you keep track of your business expenses and separates it from personal spends.
- Don’t Forget About Accounts Receivables
If you give credit to consumers, you’re fully aware that you may not get paid for sales made or services provided until the due date or later. It’s difficult to keep track of accounts receivable after a week or month. However, with automated payment reminders, you can send notifications to customers, and get paid faster. In addition, if your company needs funds before the due date, you might consider providing an early payment discount.
- Keep your personal and business finances separate
Do you keep your business bank account separate from your personal account? It may not seem essential at first, however, this step will help you manage business finances better. Furthermore, business bank statements may help you track profitability, reconcile your books, and keep track of your expenses. When earnings are combined, it becomes impossible to trace withdrawn and deposited business cash, making it difficult to track incoming and outgoing cash. If you keep your business and personal funds in the same account, you may be tempted to use your personal cash for business needs and vice versa.
If you want to simplify your business finances, switch to Zikzuk BFM (Business Finance Manager). It offers you a simple way to track your cash flow, monitor receivables, send invoices, and more. Try BFM and get tally data on mobile anytime, anywhere.