Financial Management: 10 tips to optimize your company
Posted: Mon Jan 20, 2025 8:41 am
Financial management is a sector that has a major impact on companies and is a source of terror for most entrepreneurs. But it doesn’t have to be that way. We’ve put together 10 tips to optimize your company and make it self-sustainable, prosperous and with good results. Check it out!
10 tips to optimize your company's financial management
1) Organize and control expenses
The first step to improving your business's financial management is to write down all of your company's expenses. Analyze the last few months, preferably the last 12, to assess which areas require more resources, whether there are months in which expenses are different, and which expenses are essential and which can be cut.
Then, do the same with your profits. Find out which products or services are the most profitable, which require more team time or more raw materials to produce, whether there is seasonality in sales, and what the minimum and maximum revenue is that you usually make.
With all this data in hand, you can make a prediction indonesia phone number lead of what the coming months will be like and organize yourself better financially, cutting expenses if necessary.
2) Separate personal accounts from company accounts
This financial management rule applies mainly to those who are just starting a business or who are self-employed. In these cases, the personal and corporate accounts are usually the same. This prevents you from managing your finances properly, as you cannot reinvest the money in the company.
If you keep all your money in one account, we have some spreadsheets that can help. We provide three free financial spreadsheets for businesses: for individuals, legal entities, and feasibility studies. They can help you track your expenses and income, as well as help you plan for the months ahead.
tools for entrepreneurs
3) Set goals based on your reality
When putting data on paper and forecasting expenses and earnings for the coming months, you should keep the numbers as close to reality as possible. Many entrepreneurs use other companies in the sector as a reference and this can lead to you creating unattainable goals, especially if you are just starting out. Keep your feet on the ground and grow at your own pace, reaching your own goals.
4) Keep an eye on taxes
Another essential issue that every entrepreneur should keep an eye on is the tax issue. It is necessary to set aside funds to pay mandatory taxes. If these obligations are delayed, they can generate interest and fines. Companies that do not take care of taxes from the beginning end up doing badly when their revenue increases.
Taxation must be taken into account even when setting prices for products and services. Only then will the entrepreneur have sufficient profits to invest in the business.
5) Empower employees
Each area of the company requires specialized knowledge, but when we talk about financial management, this need is even greater. It is essential to know the tools and new practices, as well as to understand terms, nomenclature and activities in the financial world. If you are a “eucorporation”, it is worth investing in a finance or accounting course to better manage your business.
Financial management
6) Create projections for different scenarios
In a world where recession is imminent, it is necessary to be prepared for different scenarios, including crises. Many businesses come to an end because they are unable to overcome financial turbulence.
To avoid statistics, you need to have accurate control over your business and establish projections for different scenarios. This way, you will always have other plans to adapt depending on your needs.
7) Don't forget about strategic planning
Financial management and strategic planning go hand in hand. Therefore, all activities related to cost and expense management and financial control must be aligned with the goals of strategic planning. Know where you want to go in order to define what actions, both in the financial department and in other areas of the company, must be taken to get there.
8) Learn how to price
All financial control must be based on the fixed cost of products, services and administrative commitments, such as rent, electricity, internet, personnel, etc. It may seem basic, but many companies do not have control over their real numbers and price their products or services incorrectly. Price directly affects your revenue, so be careful when setting your prices.
9) Automate payments
Today, it is practically impossible to think about managing any company without the use of innovation. Automated systems help reduce the time it takes to perform routine tasks and evaluate results. Take advantage of the tools and technologies that are at your fingertips.
10) Analyze results constantly
Finally, to maintain good financial management, it is necessary to constantly analyze the results, as well as the processes, the market and all external and internal conditions that may interfere with your business.
Financial management is not a closed process with a beginning, middle and end. In fact, it can be seen as a circle, requiring constant investment in strategies and continuous analysis of results.
By following these 10 tips to optimize your company's financial management, you will be able to organize your accounts, plan and predict changes and needs in your business, making decisions with more assurance and time.
10 tips to optimize your company's financial management
1) Organize and control expenses
The first step to improving your business's financial management is to write down all of your company's expenses. Analyze the last few months, preferably the last 12, to assess which areas require more resources, whether there are months in which expenses are different, and which expenses are essential and which can be cut.
Then, do the same with your profits. Find out which products or services are the most profitable, which require more team time or more raw materials to produce, whether there is seasonality in sales, and what the minimum and maximum revenue is that you usually make.
With all this data in hand, you can make a prediction indonesia phone number lead of what the coming months will be like and organize yourself better financially, cutting expenses if necessary.
2) Separate personal accounts from company accounts
This financial management rule applies mainly to those who are just starting a business or who are self-employed. In these cases, the personal and corporate accounts are usually the same. This prevents you from managing your finances properly, as you cannot reinvest the money in the company.
If you keep all your money in one account, we have some spreadsheets that can help. We provide three free financial spreadsheets for businesses: for individuals, legal entities, and feasibility studies. They can help you track your expenses and income, as well as help you plan for the months ahead.
tools for entrepreneurs
3) Set goals based on your reality
When putting data on paper and forecasting expenses and earnings for the coming months, you should keep the numbers as close to reality as possible. Many entrepreneurs use other companies in the sector as a reference and this can lead to you creating unattainable goals, especially if you are just starting out. Keep your feet on the ground and grow at your own pace, reaching your own goals.
4) Keep an eye on taxes
Another essential issue that every entrepreneur should keep an eye on is the tax issue. It is necessary to set aside funds to pay mandatory taxes. If these obligations are delayed, they can generate interest and fines. Companies that do not take care of taxes from the beginning end up doing badly when their revenue increases.
Taxation must be taken into account even when setting prices for products and services. Only then will the entrepreneur have sufficient profits to invest in the business.
5) Empower employees
Each area of the company requires specialized knowledge, but when we talk about financial management, this need is even greater. It is essential to know the tools and new practices, as well as to understand terms, nomenclature and activities in the financial world. If you are a “eucorporation”, it is worth investing in a finance or accounting course to better manage your business.
Financial management
6) Create projections for different scenarios
In a world where recession is imminent, it is necessary to be prepared for different scenarios, including crises. Many businesses come to an end because they are unable to overcome financial turbulence.
To avoid statistics, you need to have accurate control over your business and establish projections for different scenarios. This way, you will always have other plans to adapt depending on your needs.
7) Don't forget about strategic planning
Financial management and strategic planning go hand in hand. Therefore, all activities related to cost and expense management and financial control must be aligned with the goals of strategic planning. Know where you want to go in order to define what actions, both in the financial department and in other areas of the company, must be taken to get there.
8) Learn how to price
All financial control must be based on the fixed cost of products, services and administrative commitments, such as rent, electricity, internet, personnel, etc. It may seem basic, but many companies do not have control over their real numbers and price their products or services incorrectly. Price directly affects your revenue, so be careful when setting your prices.
9) Automate payments
Today, it is practically impossible to think about managing any company without the use of innovation. Automated systems help reduce the time it takes to perform routine tasks and evaluate results. Take advantage of the tools and technologies that are at your fingertips.
10) Analyze results constantly
Finally, to maintain good financial management, it is necessary to constantly analyze the results, as well as the processes, the market and all external and internal conditions that may interfere with your business.
Financial management is not a closed process with a beginning, middle and end. In fact, it can be seen as a circle, requiring constant investment in strategies and continuous analysis of results.
By following these 10 tips to optimize your company's financial management, you will be able to organize your accounts, plan and predict changes and needs in your business, making decisions with more assurance and time.