Good management of a company’s savings is not limited to calculating costs and revenues. As the business grows, its administration becomes more complex and the need to perform financial management in the right way increases. You can get more information about financial management at Broker.cex.io.
It allows sustainable business growth, enabling operations in other areas, investments, and protection in times of crisis, increasing the chances of success in the market.
To manage finances properly and obtain maximum profit, the company needs to do good financial planning, establish growth strategies and monitor the indicators, which will help in controlling the processes and activities, in addition to showing the results obtained.
We’ll now take a look at some financial management tips for you to manage your accounts more efficiently. Come on?
1) Do not mix private money with that of the company
Sometimes it happens that the owner, especially in smaller companies or start-ups, ends up mixing personal expenses with the company’s accounts and this creates enormous patrimonial confusion.
Taking money from the cashier for expenses with Individuals hinders the organization of the Legal entity’s money. Therefore, maintaining separate bank accounts is one of the first rules for maintaining good financial management.
2) Keep separate funds for different sectors
The organization of funds allocated to each sector is another point to be considered in the good financial management of the business.
All areas, such as Marketing, Customer Service, Sales, Purchasing, among others, must have individual budgets, each one is responsible for managing its budget, for its expenses, and the rendering of accounts afterward.
There must be strict control so that the funds are not confused or are redirected from one sector to another.
3) Make strategic planning
The third tip to achieve good financial management is the preparation of strategic planning, which allows the company to structure internal actions in the short and long term, and provides the necessary support for the areas to be able to execute them.
It is necessary to define which objectives and goals the company wants to achieve, in addition to the indicators to check if it is on the right path or if it needs adjustment.
From there, she manages to establish priorities, metrics to follow the results and makes decisions more assertively.
4) Organize the routine of financial activities
Financial management is responsible for analyzing the financial movement of a company, managing all capital and assets, in addition to monitoring performance periodically.
As the activities and routines to be observed are diverse, it takes a lot of organization and discipline to keep everything under control. To get an idea, it is the role of financial management:
- Planning resources, main sources of revenue and cost;
- Coordinate accounts payable and accounts receivable;
- Take care of tax processes;
- Make payments, receipts, and collections;
- Manage cash flow ;
- Make future elaboration of the financial movement;
- Perform integrated accounting;
- Constitute funds and reserves;
- Support in the acquisition of enterprises and opening of branches;
- Analyze business investments;
- Prevent waste etc.
Recalling that all the work done by the financial control serves as a support for the development of the other areas of the company.
Commitment to resource management can affect the smooth running of human resources processes (hiring, firing, and training), inventory control, sales, marketing (publicity campaigns, for example), etc.
5) Use tools that facilitate the management
The technology offers several management options, at a basic or advanced level (depending on the needs of your company), to optimize day-to-day tasks, in addition to allowing more precise control of resources.
A big mistake is in finding that hiring management software and tools is an extra expense.
It represents a great investment, as it allows processing a huge number of data, which generates time savings, greater organization of cash flow, inventory control, balance monitoring, remote access, among other possibilities.
Many of these software are found at affordable prices in the market. Therefore, the tip is to use technology in favor of the company’s financial management.
6) Asset management
Every company needs to have knowledge and control of its assets. Properly managing assets helps to avoid waste, reducing losses and expenses, as well as optimizing purchasing processes.
The control balance includes the management of tangible assets (real estate, cash, stock, investments, etc.) and intangible assets (value of your company or brand, copyrights, licenses, etc.).
When carrying out the valuation of assets, the real and updated values of all assets that the company owns are determined, which can be transformed into monetary means, thus calculating the total value of its assets.
Give the finance department the due importance, viewing finance management as something strategic for the company and not just as the sector in charge of calculations and payments can take your business to another level.
Keeping financial data up-to-date will ensure better management of resources, with identification of the points of greatest profitability and the flaws that can be corrected, allowing for more secure planning for the future.