Keeping an ever-watchful eye on your expenditures takes the guesswork out of running a successful venture. As any experienced entrepreneur will tell you, growth and money go hand in hand. Sometimes it’s not so much about making boundless profits as it is about preventing sudden and unnecessary losses of capital attributable to poor money management. Effectively managing your cash could give you the ability to take your enterprise from the garage to the stock market — and beyond.
Bookkeeping is just accurately tracking your income and expenditures, and that can take many forms. Doing it well is one of the wisest choices you can make as an entrepreneur, because whether you’re filing taxes or executing detailed plans for an expansion, you’ll thank yourself if you’ve kept meticulous records about the comings and goings of your business. Disciplined, data-rich records are one of the pillars of proper finance management, allowing you to make the best decision possible whether it’s about the day-to-day of your business or planning your retirement, and all based on the numbers you have on record.
The flow of cash in and out of your business is inherently one of the best indicators of how smoothly your operations are running. Being able to predict recurring transactions through cash flow projections allows you to set better sales goals and more effectively plan for the expenses that support sales in the first place. These projections can tell you if an assumed cash receipt will be sufficient to cover your projected cash disbursements. This helpful tool is used to better manage your finances, so that you can pay your bills in a timely manner — all while keeping doors open and mouths fed.
Take control of your finances today to ensure a more prosperous tomorrow.
by: Charles Jackson,