How To Organize Your Business Finance Better & Get Cash Flow

The aim of every business is to make profit.

This achievement can only be measured in monetary terms.

A business whose finances are in order easily excels.

More than a dysfunctional one.

Many people assume this truth for long.

Until they are in trouble when trying to sell the business.

These are the Four ways you should use to organise better finances.

1. Separate Personal from Business Finances

Make sure that your business has a separate bank account from your personal one. This way, you can measure the progress over time. MPESA gives many businesses the option to use PAYBILL and TILL number that easily collect payments from the clients. This money is also easily withdrawable for personal use even in the middle of the night. Ensure you stay disciplined so to protect the financial independence of your business.

2. Seek advice of professionals who have run similar businesses

Starting a new business is like stepping into an unknown future with a significant risk of failure. Looking for advice from people who have run similar businesses will shed some light into the dark future. These industry experts will help you assess your current situation and give you an idea of how the next year looks like. That way you can plan in advance and increase your chances of success.

3. Have an accountant organize financials

You do not have to be an expert in every aspect of the business. That is why you need to hire an accountant who can easily organize your profit and loss accounts every month at a small fee. This way, you will track your progress and understand if your business is improving from the previous months.

4. Evaluate the Equity annually

Equity is your business worth if you sold all the items and paid off the debts owed. How much are you worth if you paid all the debt owed today? It is the value of the assets minus the liabilities in your business. A good business will improve this value every year.