For those of you who run a business or the business side, of course, needed a good noted that financial management in order to sideline the way you manage to grow. One thing that always forgotten is to record all activities and transactions. Not many small businesses do. In fact, the recording is an important basic step that must be done to advance the business. Then, how to manage finances is good business?
1. Determine Portion of Finance
The simplest way to manage business finances is to agree early on how many servings of money to be used according to the traffic needed money. For example, how much money will be used to pay salaries, operations, and how profits will be used to develop business and to save.
For starters, you can try to divide the portion of 30:30:30:10. Portion 30 percent for salaries, 30 percent more for the company’s operations, such as office rent, cost of electricity, telephone, fax, transportation, and so forth. Then 30 percent more to develop the business, and the remaining 10 percent for personal savings.
The pattern of distribution with this average structure is not absolute. You may define your own. Noteworthy is the discipline of dividing by the value that was agreed upon at the beginning. In this way, you will more easily manage the business finances.
2. Separate Personal and Business Accounts
Once the portion is determined, the next step to do business financial records. Indeed, if the business is still small, we often tend to equate between the money received in the effort and money for personal gain. In fact we usually put the money in one account number. Read more
