Money Management Tips to Keep Your Small Business Afloat

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Money Management Tips to Keep Your Small Business
Afloat
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• Balancing your money is the key to having
  enough. - Elizabeth Warren Amelia Warren
  TyaginMoney management is the process of
  handling your businesss finances through
  budgeting, setting goals, tracking expenses and
  income, and investing. With a sound money
  management plan, you can avoid periods of
  negative cash flow and ensure your business is on
  track to turn a profit. Failing to wisely manage
  money can lead to problems like making late
  payments, running out of money, and not
  collecting on your accounts receivable. To keep
  business operations running smoothly, you need
  enough money to cover expenses. Put these nine
  tips to use to learn how to manage money in a
  small business effectively. (BBGV232021)1. Stay
  on top of deadlinesIf you dont know when your
  bills are due, such as accounts payable, business
  loan payments, or credit card payments, you might
  not have enough cash on hand. Not to mention,
  failing to know when bills are due can set you
  back with late fees or added interest, lower your
  business credit, and sour lender and vendor
  relationships.2. Monitor spendingDo you know
  how much money you spend per day, week, or month?
  If you dont monitor spending, you could be
  racking up bills that you dont need. And,
  failing to monitor spending can lead to
  overspending and misuse of funds.Track your
  expenses by managing your accounting books. You
  can use simple software to record accounting
  transactions. When you have a log of your
  expenses, you can easily monitor spending.

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• 3. Dont forget about accounts receivableIf you
  offer credit to customers, youre well aware that
  you might not receive money for goods sold or
  services provided until the due date or beyond.
  After a week or month, it can be easy to forget
  about accounts receivable. But if you want to
  better manage money, you must remember the funds
  owed to your business and pursue payments.4.
  Separate business and personal fundsDo you have
  a separate bank account for business? Even if you
  arent required to separate business and personal
  funds, doing so is critical to money management.
  Plus, business bank statements are useful for
  tracking profitability, reconciling your books,
  and monitoring spending.5. Time your
  purchasesTo avoid instances of low cash flow,
  time your purchases. Do not make unnecessary
  purchases until you have paid your bills. And,
  wait until you have enough cash on hand to cover
  new expenses.6. Create a budgetA budget also
  forecasts the amount of revenue your business
  will receive. If you find that your revenue is
  lower than budgeted, find ways to cut expenses
  and increase income.7. Manage inventoryTrack
  how much inventory you have in your business to
  avoid crossing the fine line between having too
  much inventory and not having enough. Record
  inventory purchases and sales in your books and
  spend time monitoring how much you have on hand
  before ordering more.

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• 8. Cut costs and increase revenueYou can
  increase revenue by offering discounts, promoting
  products through email marketing or social media
  advertisements, adding new products to sell, and
  establishing refer-a-friend and loyalty programs
  for small businesses.9. Have a cash
  reservePutting money management tips into
  practice can significantly improve cash flow
  management. But sometimes, the unexpected
  happens, and youre left needing to cover an
  emergency expense.Keep a small business cash
  reserve to help you manage money when youre in a
  pinch. You can start a cash reserve by opening a
  business savings account. Be sure to regularly
  deposit into your cash reserve.

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• 10. Do you need help?Do you also want to get
  money management tips for your business? Do you
  need our help? You too can take a step
  forward.Contact Us
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