How to organize a company’s finances? See 6 tips here

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  The financial sector of a company is a key factor for survival in the market . After all, any business needs cash to sustain itself. Also, it can take months to years to make a profit. In the meantime, you need to have the capital to support all of the company’s physical and human resources.

Are your company’s finances a mess? Is money going out without you knowing how? In this post, we’re going to learn 6 simple ways to organize a company’s finances. Check out:

How to organize the financial side of a company?

The financial sector of a company must be well organized and efficient, as it is responsible for the smooth functioning of the company in general. It is this sector that must carry out the cash flow and define which expenses must be made and which ones need to be reduced.

Here are 6 tips on how to keep your business accounts up to date:

1. Have a cash flow

Cash flow is one of a company’s main financial control tools. It works as a guide, which helps you see how much money came and went from the business in a given period.

Although it is basic, cash flow is essential so that you know how much is coming in and, most importantly, how much and how it is going out.

In it, you must register:

• all receipts, that is, cash payments, deadlines and duplicates, for example;
• all payments, from fixed to punctual;
• expected receipts and payments until the end date: in both payments and receipts, it is important to include forecasts for the following months. This way, you have an idea of ​​what can or cannot be spent and, most importantly, an idea of ​​which months will be tighter.

Although you can organize a company’s finances in a notebook, it is much more organized and safer to use management software for this.

With organized cash flow, you will have an idea of ​​the available balance of your business. It must be equivalent to the resources available in the company’s cash flow or deposited in the bank.

2. Evaluate the company’s performance

It is important to periodically evaluate developments, whether in the financial sector of a company or in other sectors.

When you do the company’s strategic planning, you need to define:

• where your company is;
• where you want to go;
• what to do to achieve these goals.

Therefore, it is always important  to measure results to know the company’s current situation — and this not only in relation to market positioning, but also on the financial side.

So that your company does not stagnate, create objectives and financial goals with a deadline to achieve them . This way, you create a willingness to go after and move the company’s profits.

3. Have financial management software for companies

As we said above, management software is the best option for organizing a company’s finances. Although the notebook is already traditional, it does not allow easy visualization of all the values ​​you need to analyze. Furthermore, entering payments and receipts is manual, while the program updates everything automatically.

Still not convinced? Software reduces costs , creates reports, integrates data, collects financial information from different segments and much more. Better: they are used to organize everything from the finances of a small company to a large, already consolidated company.

The two most important types of software to have in your company are enterprise resource planning (ERP) and customer relationship management (CRM). But before choosing them, check the main services offered (including financial ones) and whether they are updated periodically.

4. Invest in financial education

Studying the structuring of a company’s finances helps you understand what to do and how to apply theories to your business.

When you own a micro or small business, understanding financial education is even more important. There are not many resources to contain a very high expense or a market error that could compromise the stability of the business. Therefore, understanding how financial transactions work and mastering technical terms is essential.

Therefore, to find out more about how to manage a company’s finances, try to find out more about financial management, statistics, financial mathematics and accounting. Books, videos and blogs already give you a good background so you can take your first steps. However, having a business consultancy can bring more effective results.

5. Have discipline

These tips will be of no use if you are not careful with the capital of your business. Spending without considering monthly expenses can push your business into debt. Therefore, a company’s financial needs careful monitoring. Fixed and total cost, profit margin, billing, nominal profit and debt level must be analyzed periodically.

Another question: did your company get good sales this month and are you already thinking about spending? First, you must analyze net income; secondly, save that amount for unforeseen circumstances and downturns .

6. Separate the personal from the professional

In small companies, it is very common for the manager’s account to be used for business receipts and payments. This is a big mistake. You end up mixing your accounts with your professional finances and, by mistake, you can use money that belonged to the company for personal purposes.

As you have seen, it is easy to get confused and disorganize a company’s finances. However, this sector is the heart of the business. Without it functioning at its best, it is difficult to move forward.