For a business to work, regardless of size or industry, it must be run with order, structure, and, above all, healthy finances. Bad decisions or over-indebtedness can lead an entrepreneur to ruin in the blink of an eye. Proper financial management and manage your entrepreneurship is essential to achieve business success and, to generate scalable long-term projects.
But despite its importance, very few business owners specialize or focus on strengthening the area of finance in their company, either with resources or adequate training. At the end of the day, the most innovative and disruptive idea is doomed to failure if it lacks capital and proper management. According to information from Failory, 16% of the firms that fail, do it because of financial problems, the reasons range from poor management, lack of cash flow, and also lack of financing.
To avoid this situation, you can use technological resources that allow you to manage your company’s finances professionally and in accordance with the needs and challenges that the organization faces every day. Either through administration apps, project management, or a business loan calculator to obtain financing. You can even rely on accounting platforms. All efforts are good, just focus them on the needs of your company.
The importance of managing in a small business
Informality in the financial processes of small businesses is a serious problem that can lead to bankruptcy, but there are also other scenarios. According to data from SmallBizTrends, 30% of the companies come out even with their profits. If a company does not have financial statements, balance sheets, and analysis, it is like sailing a ship without a course.
One financial planning objective is to avoid unnecessary risks, take advantage of opportunities and maximize resources. There is a wide variety of financial management tools that facilitate the achievement of results and allow you to know the real needs of your company. An example of this management tool is the fitness gym management software which is a recurring billing & membership management suite that helps gym owners to run their fitness facility and manage classes, take payments, and more. Next, we present some resources to maintain healthy finances.
Financial tools that will help you in your business finances
- Accounting Software
These technology solutions are used to perform basic accounting tasks such as bookkeeping and balancing. They also offer other tools such as invoice generation, expense tracking, tax preparation, and even credit card processing. Some of the leading software on the market are Xero and QuickBooks.
- Apps for budgeting
Budgeting is vital to avoid capital leakage, many accounting software offers this tool as part of their resources. However, if you need help for a large project or with many people involved, you can rely on apps such as You Need a Budget (YNAB) or Mint.
- Payroll Systems
Managing payroll is a demanding task, requiring a lot of time, effort, and focus, three things that are difficult to achieve when a business owner also operates it. That’s why we recommend using Zenefits, Gusto, Paychex Flex, or SurePayroll, the last one with direct IRS tax integration.
- Online Lenders
These types of financial institutions are a great ally to small businesses. This alternative will allow you to access financing in a simple and fast way, with competitive fees and interest rates. Use their business loan calculator to know the characteristics of a possible loan before applying for it.
Extra tips for manage your entrepreneurship
Using these tools will improve the financial management of your business. Do not let the lack of order and discipline turn this dream into a nightmare. Numbers are your best friends when making decisions, keeping them in mind every day will give you clarity on the course you should follow.
Consider these extra financial tips:
– Create a personal monthly budget and record all your expenses and income.
– Create an emergency fund
– Invest in insurance for your company
Financing is fundamental during the growth and development of a company. Use a business loan calculator to project a possible loan and invest this capital in improving the financial processes of your company, the economic benefits will be reflected from the first months, you will not regret it.