Effective financial management is vital for your business. Your financial resources will need planning, organising, controlling and monitoring. Financial management should be a key process within your business and included in any ongoing planning.
A business plan will identify where you want to get to in your business in the next few years. You should know what money you need for your business and where it is coming from. The progress of your business should be regularly monitored checking against the targets that you have set. On a daily basis, you should know how much money you have in the bank.
Making sure your customers pay on time will avoid you running into problems from late payments, credit terms and conditions should be clear from the start. It’s important you know your day-to-day costs, rent, wages, etc. Using a good record-keeping system will keep you on track with expenses, debts and creditors and save you time and costs.