Taking stock of your business finances

It is important to take stock of your business finances to make sure your books are balancing and that you are also keeping up with the latest information. A number of businesses do not upgrade to newer versions of QuickBooks and other financial programs, making it difficult to keep track of their books when changes come such as online bill pay.

You must take stock of your business finances and protect your business from financial disasters. Here are some simple ways you can take stock of your business finances.

First, begin with proper financial planning. No matter how large or small your business is, you will need to plan out your business finances. There are multiple areas to include like your marketing budget, human resources, etc. Each department will need to have specific funds allotted to them in order for them to effectively market and to continue to function properly. Hire a good accountant to help you with your books. Financial planners help you draw up a basic plan for your books. They will help you organize your books so that you aren't going over budget.

Second, focus on your investments. Every business will have money investing into something. This helps them to strengthen their cash reserves and to have money for the future. Look for low-cost investments that will return consistent numbers for you. By doing so, you will have a sustainable cash flow throughout the future. Global investments are another wise decision for businesses as they yield higher returns.

Third, know what your loan options are. You will need to acquire loans for your business in the future. What are lenders looking for with these loans? Do they want you to have a certain credit score? You need to prepare your business to acquire future loans as you will need them to build up your business credit. Focus on a higher business credit score by paying your loans in a timely manner. When you pay your loans before they are invoiced, it shows stronger financial control on your part and it allows lenders to have an easier time approving you for a loan.

Fourth, check your day-to-day finances. How are you tracking your books? Do you have a system in place for your company? Using a good software program like QuickBooks helps you keep track of your daily expenses and allows you to manage your business easier. Watch the users you have with your software program. Having too many users can complicate the books and it may cause you to have cash flow problems due to wrong numbers being entered into your system. Always check your books daily to see if you are in the red and use it to help you project sales so you can change your marketing efforts if they are not working.

Some final tips you need to remember:

• Draw up a good budget. A budget plan allows you to control your business finances and will help you track your books to you can be sure that you have money to pay for your current needs and future needs.


• Make smart financial decisions. Just like your personal spending, you need to make sure you are making smart decisions. What are you spending your money on and are you overspending your budget?


• Set aside money for the future. You need to have money set aside into cash reserves in order to help finance future growth for your company. If you aren't setting aside money and you aren't planning for the future, you won't be able to buy expensive equipment or pay for marketing programs to attract new customers.