New in Business? Check out Tips for Managing the Right Finance!

Article / 29 April 2019

Share

For you who are about to start a business, it is a must to know how to manage finance properly. Financial Management has a huge impact, both for large-scale and small businesses, also in developing a thriving and successful business. The right manage on finance will generate maximum profits as well. Here are some tips on how to manage finances better for a business that is about to start!

The Four Things on Scoreboard

This scoreboard is one of the main drivers for your business growth. Managing business finances by monitoring the scoreboard will maintain your business to grow optimally. This scoreboard consists of four things; gross sales, gross profit, gross profit percentage, and net income. Each of these is needed to be monitored per quarter to get a number of data. These data include the ongoing trends, target status, and to analyze the benefits to develop the business for the next period.

In a simple way is this cycle; analysis – decision – action – results. This cycle will repeat continuously every period. Through this scoreboard monitoring step, you can predict and anticipate future trends to help you find the right way to manage business finances. You can also allocate funds to several important posts when the trend increasing or tighten expenses when there’s decreasing in that business trends.

Avoid the Risk of Debt As Much As Possible

Ensure you maintain and develop your capital well for it’s the main point in business. When your business starts making a profit, you need to calculate these profits flows so it will not end up spending excessively. Although you have been trying to avoid debt, there are always some conditions where you have less capital and forced you to owe. However, you should not be in a hurry to make a decision. There’s always time to consider every option you have other than taking debt to run the business.

In addition to that, you should also avoid receivables. Those buyers who owe you may not feel the impact when the amount is not that much. But, later on, it may have a larger impact if the amount of receivables is even larger. Therefore you need to limit the number of receivables. You need also to ensure that there are no buildup receivables that will detain the return of the capital you need to run the business.

Maximize Profit to Grow a Business

There are many things you can do to thrive in the business, maximizing the profit is one of them. The better you manage the business finances, the better the profit you will receive can be utilized for business development. Maximizing profits also means there will be a chance for the business to be more advanced. This process includes ignoring some personal gain to enjoy the profit. It may be tough, but still, you need to prioritize your business needs instead of personal needs. Also, the benefits that you will get obviously greater at the end.

Optimize the Digital Banking Services

One way to optimize the function of digital banking services is to maintain your business financial records in it. This is a form of investment you can do for better finance management. Utilization of digital banking services will make the process easier, including its services in saving time and effort.

That is information on how to manage business finance just starting, especially in managing your business finance in a better way you can use D-Financial. This is one of the Danamon products, which are tools to support Small and Medium Enterprises in developing and managing a business. Manage your business finances more optimally!