How to master your accounts

If you are in the world of business management or business finance, you spend a lot of time thinking about your different accounts.There are business accounts, which you are trying to get and trying to keep once you have them.There are also credit accounts, which you are trying to pay off while paying the least amount of interest possible.It's enough to give you headaches if you let it.However, there are a few simple tips that you can follow to help you master all of your business accounts.

Be scrupulous-the more careful you are with accounts, the less of a headache they will end up being.You should consider computerizing your business if you haven't all ready.A good computer program is the key to good record keeping.By having all of the account information in a computer program it will be easier for you to work that information into a budget and keep track of it in general.If for some reason you are still doing your finances with pen and paper (and surprisingly, about 40% of small businesses are) you should make sure that all the pieces of paper go into a well-organized system.Meticulous management of your accounts is the first step towards mastering your accounts.

Stay informed-if you are the owner or general manager of a business, you might put good people in financial positions and focus on other things (hopefully your golf game).Even if you have top-notch people running your ship, it is still a good idea to get a personal briefing on each account.At least once a month you should review each account, see how much money it is bringing in or how much money it is sucking out.Find out about any problems associated with each account.The more interested you are in each account, the more your financial officers will tell you and the more informed you will end up being.Staying informed is the second step towards mastering your accounts.

Budget-you really have to focus on your budget if you are going to master your business accounts.The key is to make sure that there is more revenue than expenses each month.You should budget at least three months in advance and be flexible.If you aren't pulling in the revenue that you had projected, rework the budget so that you can still run the business with the limited funds.Getting new business accounts takes money up front.You have to sell new accounts and it takes both material and human resources to do that.Part of mastering accounts is having the available resources to acquire new accounts.It also takes some money to maintain current accounts.Be sure that when you budget you include growth and maintenance of existing accounts.

Be flexible-you don't just need to be flexible with your budget.Sometimes you need to be flexible with your accounts as well.If you have a great account and the owner is going through a hard time (say a medical emergency in the family), you might need to extend a line of credit to that account that is unprecedented.As an owner or manager, you should try to know the contacts for each account personally.If there are extreme circumstances, you might need to engage in extreme account management.Don't extend favors to bad credit risks but if you have a good customer and you can help him or her get out of a bind, you might end up with a loyal customer that will stay with you for the life of your business.