Finance management gives small business owners a particularly hard time because they least expect it. When getting a small startup going, you tend to be more focused on gathering a creative team and the product itself. The money, you leave for the later. But rest assured, if you are initially focusing on the aforementioned two and getting them right, money isn’t too far down the road for you, my friend.
Sooner than you know, you would be struggling with keeping track of your finances. The headaches and anxiety would be intensified two folds if you’re managing multiple small businesses at the same time.
This could be a downside to the soaring success of your entrepreneurship venture but not so much if you deal with your profits systematically and sensibly. A small business setup Dubai has suggested the following few effective ways of managing small business finance after a firsthand experience with these tips and techniques.
Related: 7 Best Financial Practices for Small Businesses
5 Ways Of Managing Small Business Finance
1. Use Cloud Computing Solutions
Investing in a Cloud Computing Solution or signing up for one that offers free service will not only manage your finances but also curb them. More and more business owners are turning to finance management solutions available on cloud as technology becomes cheaper than hiring people.
These online finance manager softwares are fool proof, automated to a good degree, fast, and very efficient. Also, you stand a lower risk of losing data as everything that goes on the cloud is regularly backed up. These accounting softwares offer everything from financial records to reminders and forecasts. The best part about cloud computing solutions is that they can be accessed anywhere anytime; all your data at the disposal of your fingertips!
2. Improve Supply Chain Management
Supply chain management is a comprehensive term for overseeing basically every step of the production and distribution of a product. However, this oversight is particularly for material, information, and finances as they transit between the processes, from supplier to manufacturer to wholesaler to retailer to customer. Make sure that there is strict check and balance on each step and no middle men involved to further reduce the costs.
3. Consider the Employee Salaries
When counting the business finances for a month, don’t forget to add in your employee salaries. Your team/employees are your most valuable asset but also most likely your biggest expense. Whether you have a team working under you, waiting to receive their hard-earned salary or you’re the only one on the payroll, remember to keep a thorough track of costs of wages in the market, benefits, bonuses, overtime, and all other expenses associated with labor.
By maintaining a proper record, you will find that you have the leverage to offer additional benefits and incentives to your employees as well as spend some on side costs of the office.
4. Read for Risky Times
The thing about entrepreneurship is that it comes with lots of risks and apprehensions. There is nothing wrong in taking the leap every once in a while or when your instincts point towards it, but you must always have some money set aside for when you take a step in the wrong direction.
Apart from the risks you take willingly for your business; there will be some imposed on you by the society, such as the global financial crisis in 2008. In times like these, small businesses suffer the most if they haven’t been managing their financial accounts and don’t have any assets in store.
5. Work With the Best Local Credit Union
Credit unions can offer big help in terms of loans and financial aids when if they understand your business and its specific needs. You can go a long way if you have a stable, supportive credit union by your side. You can look for them online or visit their office in person and settle your deals with the most suited one.
Read Also: 5 Quick Ways to Build Your Startup Credit
Brenda Cagara has been writing for websites, articles and blogs for five years now. She had a fair share of writing on variety of niches but her main focus on business, finance and taxation. Currently, she is working with Business Consultants in Dubai (Riz & Mona) that offers company formation and business setup in Dubai. Other services are visa processing, bank account opening, trade license, Product Registration, trade mark, local sponsors and many more. Follow on TW, G+