Almost every activity in a business is supported by money. The management of such large amounts of money is what we call finance. It starts with financial planning. It is the process of evaluating the current financial position and strategizing for the long-term objectives of a business. It keeps the company in check and avoids risks of loss due to impulsive decisions that a small business can take to handle the problems.
Business Financial Management in SMEs
Most of the small businesses ignore business finance management, a critical step, and later run into chaos. A Financial Plan is the foundation of any business. It creates a balanced plan to meet short and long-term objectives. Let’s discuss what happens when a small business avoids financial planning.
1. Inadequate Savings
SME saves the money which is left after its expenses. If it had anticipated lesser cash flows in the future, it could have saved more than it currently does. It sometimes also results in businesses having more savings that will sit idle.
2. Overspending & unexpected expenses
When a small business doesn’t have a financial plan, it becomes easy to overspend and end up with less cash in hand. Also, it becomes difficult to manage when faced with unexpected expenses.
3. Irregular Tax Payments
When a small business can not anticipate its future income, it fails to measure its tax liability. It results in not paying its taxes on time and incurring additional penalties after that.
ZikZuk Technologies is your aide to help with the financial planning of your business.
1. Liquidity Management
ZikZuk helps a small business in anticipating its future incomes and expenses based on its past performance. It provides opportunities to manage unexpected costs and curb overspending. At the same time, it facilitates adequate savings to meet its future expenses.
2. Credit Arrangement
During financial planning, a small business has two options to finance its expenses. One being equity, and the other is debt financing. ZikZuk recognizes how hard it gets to arrange debt for a small business; hence it helps them via its Founders Card.
3. Tax Compliance
With its Cash Flow Projections, ZikZuk helps small businesses in estimating their tax liabilities. It further provides the option to pay taxes through its software.
A healthy cash flow keeps a business alive. Investing in a business’s financial management always pays in greater transparency and profitability. ZikZuk technologies is specifically designed to cater to all the financial needs of a business.