Top 10 financial management tips for business
By Mr Bankruptcy
18th September 2023
Financial management is the planning, organising, monitoring, and controlling of financial resources so your business can achieve its goals. By understanding what your business is earning and spending it will offer financial insights so that you can plan more effectively, make better use of resources, improve competitiveness and become more profitable.
Top 10 tips to improving financial management
From years of experience helping business owners and managers to deal with unmanageable debt, here are the top measures we’ve seen clients use to take back control of their financial liabilities.
- Have a business plan: This should focus on what you want your business to achieve and the financial cost in order to have a clear path to how you will accomplish your goals.
- Examine your finances: Monitoring your business cashflow is essential. Understanding outgoing and sales and how much stock you retain will give you a deeper understating of what’s happening within your business. This will give you the data to make adjustments when needed so that you can be more proactive.
- Maintain good financial records: This means they need to be accurate and updated regularly to ensure the decisions based on them are sound.
- Manage credit control: Have clear payments requirements in place, ensure invoices are raised quickly, are being paid on time and, if not, follow up for payment promptly and effectively.
- Understand your business costs: Have a clear understanding of what it costs to run your business on a daily basis. Control overhead costs as these can be expensive and need to be managed. Look for opportunities to drive efficiencies and reduce costs by managing suppliers, reducing waste and unnecessary spending.
- Pay your taxes on time: Ensure taxes are paid on time to prevent incurring additional interest or penalties so you end up paying more than necessary.
- Manage stock levels: If you have too much stock, valuable capital is being tied up that could be made available to invest elsewhere.
- Choose credit carefully: When looking for additional financial support, be mindful of what it would be needed for and for how long. Not all credit options will be suitable for every situation and it could end up costing you more than it’s worth.
- Keep personal finances separate: Ensure that you are clear on what’s happening financially in your personal and business worlds by keeping personal and business finances separate; they can be tricky to untangle and can give you a false idea of your business and private financial situations.
- Consult financial experts: When struggling to control your business finances, seek expert advice quickly to enable you to get back on the right path before issues escalate.
James Rosa Associates
James Rosa associates is a firm of debt advisors and debt adjustors. With a supportive and friendly approach, we offer a full range of advice and professional services to business owners/directors and to individuals facing unmanageable debt or who are involved in civil or commercial disputes. Our services include:
We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.
Find out if you qualify for a free consultation
If you want to deal with an unmanageable debt, or bring a dispute to a swift and cost-effective resolution, contact James Rosa Associates, ring 0845 6807217 or email enquiries@jamesrosa.co.uk to find out whether you qualify for a free consultation.
Please be advised that all views expressed in these posts are those of the author and not of James Rosa Associates ltd.