The main goal of a business is to earn and maximize profits. In order to maximize profitability and potentials the business finance should be well managed. Following are the 5 key points for business financial accounting and management:
1. Raise Money: Businesses need money:
• As capital to start a new business,
• As working capital to meet the expenses,
• Reserve for unexpected problems, and
• Reserved funds future investments.
Prepare feasibility and welcome investors to raise funds.
2. Be calculated:
Buying fixed assets is not the only option, leasing and renting can also be considered depending on what is more feasible not only in short run but also in long run.
3. Keep the Stake holders informed:
Keep the stake holders informed; these can be banks, your investors, your suppliers, your customers, and even your Inland Revenue representative. Keeping them informed maintains good business relationships and increases credibility. Like this, more funds can be raised. This help in growth and expansion of this business resulting in maximizing profits.
4. Bookkeeping:
Every transaction should be recorded in your bookkeeping records, whether that be the management cost or the financial records for the requirements if ISA (international accounting standards).
5. Payment and debt procedures:
Avoid limiting yourself to uniform business deals. Be open for possibilities if your investors, suppliers, and customers ask you for renegotiation on your transactions. Renegotiation starts and ends with business deals. They should not extend to your payment procedures and debt accountability.
1. Raise Money: Businesses need money:
• As capital to start a new business,
• As working capital to meet the expenses,
• Reserve for unexpected problems, and
• Reserved funds future investments.
Prepare feasibility and welcome investors to raise funds.
2. Be calculated:
Buying fixed assets is not the only option, leasing and renting can also be considered depending on what is more feasible not only in short run but also in long run.
3. Keep the Stake holders informed:
Keep the stake holders informed; these can be banks, your investors, your suppliers, your customers, and even your Inland Revenue representative. Keeping them informed maintains good business relationships and increases credibility. Like this, more funds can be raised. This help in growth and expansion of this business resulting in maximizing profits.
4. Bookkeeping:
Every transaction should be recorded in your bookkeeping records, whether that be the management cost or the financial records for the requirements if ISA (international accounting standards).
5. Payment and debt procedures:
Avoid limiting yourself to uniform business deals. Be open for possibilities if your investors, suppliers, and customers ask you for renegotiation on your transactions. Renegotiation starts and ends with business deals. They should not extend to your payment procedures and debt accountability.
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