Time to Review Your Monthly Figures
We are now already one month into 2019! Can you believe it?? The end of the month means that, as a business owner you should be looking at a few areas, such as outstanding debtors, creditors and stock levels. But very importantly, you should be reviewing your figures. YES! Reconcile your bank account and get some financial reports out to see how your first month has gone.
Was it as good as last year? What went well or not so well. Are you on track for budget? Below are some top tips keeping your business finances in check.
Getting Your Business Finances in Check!
- Regularly review your financial reports – It is a crucial element in keeping you informed of your business performance. This helps you to make accurate, timely decisions.
- If you don’t know your numbers, you are effectively ‘flying blind’ in your business and it is very difficult to plan ahead.
- As the business owner, take a ‘wage’ for yourself each week. DO NOT live out of your business bank account! Spending on personal items and bills should come from a separate private account.
- Keep your debt level in check and don’t over commit or borrow to fund cashflow, unless it is very short term. Luxury or expensive vehicles and overseas holidays should be saved for (not borrowed for) and only purchased once we are in a good financial position and are making healthy profits.
Remember, cashflow is KING and should come from profits, not loans.