Are you trying to improve your cash flow and grow your company? In order to achieve these types of financial resolutions for your business, you must create a realistic plan. Here are four tips and tricks to help you determine your small business's financial goals and stick to them throughout the year.
1. Update Your Financial Management Software
One of the most common resolutions for business owners involves improving cash flow. As a business owner, you may face challenges in this area due to outstanding accounts receivable that build up while you're trying to cover accounts payable. Financial management software can help you perform tasks associated with credit management, accounts tracking, invoicing and more. Make sure to update the program you have, and start using every tool it offers on a daily, weekly and monthly basis. Review your financial picture regularly, and keep on top of cash flow by automating invoicing reminders for outstanding accounts.
2. Recalculate Your Budget
A quick way to get an overall financial snapshot of your business is to review your budget and see how closely your company sticks to it. A lot can change in 12 months, so it's a good idea for you to review your spending patterns from the last fiscal year to better understand where you're overspending and what new costs need to be included in the new budget. This insight will help you identify areas for cost-cutting, such as finding cheaper suppliers or services, that can help make it easier for you to stick to your business resolutions.
3. Get Your Employees Involved
Achieving goals can be easier and more fun when you resolve to make it a team effort. For example, if you want to cut back on office supply costs or reach higher sales targets, you should strive to get everyone at the company involved. Set your goal, track it and offer an office lunch or out-of-office activity as a reward for reaching your target. By getting your team involved, you can be one step closer to attaining your goals, while at the same time fostering a positive and engaging working environment.
4. Clean Up Your Personal Finances
In order to keep your business financially sound, you must keep your personal finances in order, as well. Take a close look at your own spending, as many business owners find that their personal and business finances overlap. This may become a nuisance when you're trying to file taxes or consolidate your company's financial status, and it could lead to poor spending habits. You should also resolve to keep your personal finances and credit score in good standing so that you can improve your chances of getting approved for any growth loans for the business that depend on your personal credit. To keep your business and personal spending separate, you should only use your business accounts for business purchases, and you should review them monthly to ensure that everything is in good order.
Remember, keeping financial resolutions for your business is easiest when you use the right tools, complete weekly or monthly reviews of your progress and make sure your whole team is working toward the goals you've set for your company. With the right approach, you can keep up with your business's resolutions all year long.
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