9 tips for good corporate financial control
Good corporate financial control is responsible for keeping a business up and running. In addition to being necessary for the administrative routine, it is through it that a manager can identify the growth path of his company and what directions to take next.
Business management and control bring together a number of factors that are thermometers of the success of an enterprise. Financial management is one of the main factors (and most important).
The need for good financial monitoring ranges from large corporations to individual microentrepreneurs. Although applied to different contexts, the basic financial management tools for large, micro and small companies are similar.
In this article, you will check out nine basic tips for efficient business financial control. Write them all down, okay?!
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1 - Maintain good cash flow and control
Having a good cash flow is the key to good financial control. In addition to recording only what comes in and what comes out, it is also important to have a projection of the expenses and income that will be launched in the future. With this forecast of the future, planning may be more assertive.
In addition, it is important to maintain a strict commitment to the company's day-to-day cash control. In this way, you will be able to analyze whether your forecasts match reality and whether the business is going in the right direction.
2 - Plan your future
Planning which goals you want to achieve with the enterprise in the medium and long term is also an essential part of financial control. With this, it is possible to understand how the current cash should evolve to achieve the defined objectives and how to start working now to achieve them.
Planning also serves to better prepare for future investments and unforeseen expenses, such as those with personnel or maintenance. Thus, they will not have so much negative impact on capital.
3 - Pay attention to deadlines
Scheduling deadlines strategically has an impact on a company's financial health. Better payment terms negotiated with suppliers, for example, can make your working capital not too compromised, which is always ideal.
Another factor to be aware of is the dates of large cash outflows. Preventing them from happening next to each other helps to minimize the effects of any unexpected problems that may hit the company during this period.
4 - Have your pro-labore
For those who work in society, this is already a known practice. Pro-labore is the monthly withdrawal of earnings from the partners of an enterprise. That is, the equivalent of your salary.
For those who work individually, this practice is often not respected. After all, it is not difficult to find small business owners who end up mixing personal and company finances.
This practice, however, can bring losses to the company's coffers. It is important to define what the salary of the business manager will be and try to stick to that amount as much as possible. If there is an urgent need to withdraw cash, ideally it should be registered and replenished as soon as possible.
5 - Count on other aids
The direct monitoring of the finances made by the manager is not a substitute for the work of a competent accountant. In the case of larger companies, a good team responsible for the financial sector also adds to the success of an enterprise.
Technology is also of great value in this area. Gone is the time when excel was the foundation of financial control.
There are already several tools on the market today that can help with this function. Just choose the business financial control software that best suits your reality.
6 - Review your costs
The fluctuation of market prices directly influences the costs of producing a product and even a service. The value of raw materials, payroll expenses and also the cost of fixed expenses, such as rent, vary over time.
Therefore, review costs whenever possible so that your product or service is not lagging behind. If this occurs, it can cause you losses.
7 - Be aware of the stock
Inventory spending is often a considerable part of a company's expenses. Both the purchase of inputs and their storage must be considered when closing accounts.
The ideal is to work with a balanced stock, without excess goods (which mean money stopped) or products in short supply (which can cause loss of sales).
Carefully analyze whether certain discounts earned with a large inventory purchase at once will actually bring a compensatory benefit to your cash.
8 - Cut spending
If you have been following most of the tips passed so far, you already have a good sense of the company's expenses and earnings. From there, you can reflect on what are the areas of greatest financial outflow and what measures can be taken to reduce it.
It is evident that some expenses are more difficult to avoid or even decrease. However, cutting spending on things not so essential is able to give the breath your cashier may need.
9 - Invest with intelligence
Having an emergency reserve is something that every business owner should make a priority. But, for that, it is not enough to just save money, it is also necessary to know how to invest this amount thinking about the best way to be used when necessary.
For this type of reserve, the suggestion is an application of high liquidity and low risk, that is, something that allows a quick withdrawal without the loss of resources.
Investments must also be studied in the application of the company's income. Knowledge in this area or the help of specialists is a differential that can leverage your gains.