Managing small business finance can sometimes be overwhelming and stressful. The sooner you act and seek assistance if you are having trouble managing your business finance, the easier it will be to return to a path of financial stability. That’s why BUSINESSNAV, your expert finance consultant is here to help with 5 financial tips. With these tips, you will be able to manage your business finance better to take advantage of new opportunities and maximise profits. 

1. Cash Flow Structure 

Cash flow is important as it enables the business to meet current financial responsibilities while also allowing the business to plan for the future. A cash flow statement keeps a record of all the money that comes into and goes out of your company. When you require extra money for payments, use it to identify payment cycles or seasonal patterns. This might assist in your planning and ensure that you always have enough cash on hand to make payments.

In order to have a positive cash flow, a well-thought cash flow structure is needed. While building a cash flow structure can be confusing, there are always good tools here that can help.  

CASHFLOWNAV is an app that can help you understand more about the business’s cash flow, but also simplify all the complicated equations for your business. By downloading this app, you can easily access an overview of the most important financial figures of your business. 

2. Budgeting & Forecasting 

A budget is an effective and crucial planning tool that helps you manage your company’s finances so you can pay for needs and have money left for savings. It forecasts your company’s future revenue, costs, and profits. You may use it to ensure you pay off your debt and understand where your money is going. It can determine what you can afford as well. Your ability to manage unforeseen costs thanks to your budget might give you peace of mind. You can pay off more of your mortgage, credit card debt, or other debt if you can locate more savings in your budget. To keep the company on the correct road, it is crucial to have a viable and reasonable budget.

With BUSINESSNAV, professional financial budgeting and forecasting can be made to suit the specific needs of the business.  The CASHFLOWNAV app takes user data growth and creates a single-year forecast. The needs of markets are constantly fluctuating. Therefore, forecasting allows businesses to make well-informed business decisions and hone in on both short-term and long-term goals.

3. Quality Balance Sheet 

A balance sheet, also commonly referred to as a statement of financial condition, is a list of all the assets and liabilities of your business. It will display your remaining financial resources if all of your assets were sold and all of your obligations were settled at any given time.

A quality balance sheet is just as important as a profit and loss statement. When businesses only look at profit and loss statements, they often make wrong assumptions about the profitability of their business. As a result, it is essential to ensure that the quality balance sheet is consistently updated and remains accurate. 

small business finance

4. Timeliness 

One of the most crucial elements of managing finances is the timeliness of account data. Businesses should set up a certain monthly time and procedure to reconcile all accounts. Businesses may assure consistency and quality in this way, as well as ensure everything is completed on time and within the allotted amount of time. The financial flow of the company is ensured by doing this. Additionally, clear, well-organised financial data promotes informed decision-making and aids in a better understanding of expectations for the future.d

5. Decision Making 

Last but not least is the process of making decisions. When it comes to the decision-making part, this is when business owners are in control and need to make early decisions before problems arise or get worse. Generally, decisions revolve around two key considerations: how and when to borrow money, and how and when to spend it. When contemplating these considerations, businesses will need to assess costs against benefits and be aware of any implied risks. Your final financial decision-making should draw on the aspects mentioned earlier – that is analysing cash flow statements, balance sheets and profit and loss statements.

Looking for guidance on managing business finances better? Sometimes it might be a struggle for business owners, but BUSINESSNAV is always here to help to navigate the business to grow. Our financial advisors are experts when it comes to managing business finances. 

Contact us here or use the form below to find out how we can help you to get the best financial management for your business.