Managing business finances is challenging. Staying on top of the business expenses is often a struggle for businesses. According to a survey by the Federal Reserve Small Business Credit, around 47% of business owners acknowledged that they could not sustain their business for more than 2 months if the revenue disappeared.
Don’t wait for a sudden cost or a bad loan to throw your business finances into a frenzy. Proper working capital management can provide financial stability which will increase the chances of your business’ success.
Ways to bring business finance on the right track
1. Manage your cash flow: Cash flow management requires ensuring that the incoming funds can cover the costs to keep the business up and running. Keeping a close track is required to make sure that the expenses are under control and expenses are not exceeding the business income.
2. Establish a separate bank account for business: According to a survey by The Federal Reserve, a separate bank account for business has been created by more than 60% of companies that have remarkable financial health. Waiting for the generation of enough revenue before opening a business bank account is a common mistake. Always keep a separate business account to avoid mixing personal and official expenses, which can lead to confusion. It will be simpler for the business to track its finances and spendings through a separate business bank account.
3. Don’t be afraid of the right kind of loans: Consider taking loans for businesses to maintain a healthy cash flow or to grow your business further. The additional financial influx can be used to boost cash flows and in moving your business in a healthy financial direction. Look for the right loan that offers an easy repayment timeline and low-interest rates.
4. Automate expense tracking: Most companies have started using smart platforms for their financial and accounting requirements. Automated expense tracking through these platforms is easier and more accurate.
ZIkZuk BFM is an AI/ML data-driven business intelligence platform that syncs with multiple accounting software like Tally and empowers SMEs to focus on business and its growth by managing their business finances. It provides real-time financial insights and cash flow projections that can help in planning the future growth of your business.
5. Maintain a good credit score: It’s always beneficial to maintain a good business credit score. Good credit history is required to get the business loans faster and at better interest rates for the business. Get a credit report and work on the points that are attributed to bad credit, if any.
Businesses are always on a stretch when it comes to time and money. Good business finance management can help your business thrive and give you the insights to plan your future for success. Learn more about how ZikZuk can help your business.