As a business owner, you definitely want your business to grow bigger. So if you want your business to grow well, you have to pay attention to so many things. One of them is to pay attention and manage business finances well, which is a determining factor for the sustainability of your business.

In order to manage business finances well, you of course need to learn and know how to manage finances. Here are 5 ways to manage business finances for those who are just starting a business. 

Business Finance

How to Manage Business Finances for Beginners

For those of you who are just starting a business, it is very important to pay attention to cash flow, capital turnover, asset development, as well as profit and loss. Do not let the lack of attention in this matter, you even experience losses. Here are some ways to manage business finances for beginners that you can try.

1. Separate Business and Personal Accounts

A fatal mistake often made by novice entrepreneurs is to make one between family, personal, and business accounts. Whereas it would be better if you have firmly started a business, then you also prepare a special account that will be used as a place for the entry and exit of money generated from the business you run. 

If you do not separate your business and personal accounts, it is not impossible that you will experience difficulties in managing finances. Another dangerous thing that can happen is that you may end up using money that should be used as business capital for personal use. As a result of mixed financial management, you run out of capital and finally the newly started business fails before it has a chance to grow.

2. Make Special Business Book keeping

The next thing you need to pay attention to in managing business finances is bookkeeping. The function of this bookkeeping is as a complete record of daily expenses and income, as well as the amount of assets and debts owned.

With bookkeeping, you can find out the losses and profits earned through your business. In addition, if there is a loss of money or an error in calculation, you will find it easier to find.

3. Pay Bills on Time

Paying taxes is an obligation as an Indonesian citizen. As a citizen as well as an entrepreneur, it is certain that you also have this obligation to fulfill. Report and pay taxes according to the rules that have been set. In addition, if you have business capital loans, installments, or other business bills, make payments on time. Late payments will usually be charged with interest and fines, and this will definitely hurt your business. 

4. Petty Cash

In managing your business finances, you need to prepare petty cash, a predetermined amount of cash, to finance daily operations within a certain period of time. Don't forget to record the details of every use of money from this petty cash.  

5.Setting up an Emergency Fund

Another important way to manage your business finances is to have an emergency fund. The function of this emergency fund will only be felt when your business is experiencing unexpected events. 

As an entrepreneur, of course you cannot guess when an adverse event occurs. For this reason, you need this emergency fund as a preparation so that if it happens, you will not spend the business capital and profits that your business has collected painstakingly. It is even better if you also allocate funds for insurance as an additional safe protection for your business.

How to manage business finances in this article is the most basic thing that you really need to prepare and do the best you can.


Popular posts from this blog

How to Manage Personal Finance Simply

Wise Salary Management: Tips for Organizing Your Personal Finances