Top 7 Money Management Tips for Businesses from 2017

I‘m always on the lookout for articles with the potential to positively change a business. What’s your take on the following points I came across recently?

Need to add to your list of New Year’s resolutions for your business? Read on.

Tip #1: Start sales forecasting

Put simply; sales forecasting is all about predicting what’s ahead so you can prepare for cash flow peaks and troughs. As soon as you have a month’s sales behind you, you can start forecasting cash flow—using your market knowledge, think about your pricing, the level of competition, the state of the economy and so on, to work out demand. Remember it’s better to be overly cautious than optimistic—that way, you’ll hopefully avoid nasty surprises.

Tip #2: Make sure your financial records are up to date

Businesses with up-to-date accounting records are far better at making informed, educated decisions based on real, current facts. It’s therefore essential that you allocate some time every week to updating your books. With the right tools, you don’t need to spend more than a few minutes a day, but it won’t be long before your business starts reaping the rewards. Keeping your records up to date helps you create and maintain a solid and reliable idea of progress—making it easier to see if you can pay yourself and your employees this month. You need to record revenues, business costs and allowable expenses as they happen. A few minutes a day can save you hours over the course of a year.

I’d be really interested to know your opinion. Check out the full article here and then I’d be happy to discuss with you by phone (0400) 032-110 or email [email protected].

Thanks,

Bill Mitchell