Female business owners are quite competitive, and there are many successful startups and companies that have women in top-notch positions. As an entrepreneur, a lot of responsibilities come attached, especially in financial concerns. As a woman, you are already at an advantage of having the sixth sense of know-it-all dealing with the daily complexities that the stereotypical world throws at you. Therefore, being a queen of your own business may not be that hard, right?
Here we share with you nine tips that can help women entrepreneurs like you to keep a hold on your business finances.
1. Organize Your Expenses
It is easier to organize expenses if you do it at the right time, otherwise you might forget where the necessary receipts and items are, leading to erroneous calculations. Take time each week and categorize expenses and payments. Make a list of expenses to manage priority-wise. Take a note of transactions that took place or about to happen, when to expect a cash inflow and outgo of repayments and more.
2. Drive the Results
You can take things into your own hands by defining daily tasks and sticking to them. Build focus on daily activities and everything will eventually fall in place. Delegate tasks to your team and question every employee when necessary. Keep the sales and finance team up on toes, especially if you are concerned about certain financial deals. You will find that you are more aware of your business activities and finances this way.
3. Review Both Sales and Purchase Activity
Though you may have hired a workforce to review the sales and purchase activity, you should get the same audited on a timely-basis and personally keep a check on it — particularly if your company is new in the industry and still in the initial stages of the business.
4. Outsource or Manage Internal Team
It may not be always possible to have the right skill-set to manage every kind of task alone. Thus, you may have to hire talent or outsource the job to a third-party agency. All these seem good, but keep a note of the finances involved. You can either fund the requirement yourself, or simply take a business loan and pay for the resultant expenses.
5. Have a Process for Financial Reporting
Create a deadline for financial reporting and stick to it, even if business goes lax at any time. It is essential to have a profit and loss analysis done every one to three months. Doing timely analysis of the financials will help you know the strengths and weaknesses of the business in terms of funds and earning.
6. Switch to Automation
Time is money, so if you have more time at hand, you can utilize it productively. This is where automation tools can come to a rescue. There are marketing and sales automation tools that manage your email campaign, make cold calls, and do just about anything you want people to handle and keep an eye on. You can schedule the campaigns by setting up the content and date for publishing/sending etc, and just relax, let the tool do the rest.
7. Monitor the Cash Flow
Develop a habit of monitoring cash flow. Keep an accountant who will provide a quarterly analysis of income statement/balance sheet. Stress on maintaining complete records of all the cash and payment transactions. If you feel a shortage in cash flow, there are several funding schemes for women, charging lower rates. Do check those out for best offers.
8. Upkeep the Overall Financial Health
A business grows at own pace, thus it is important to keep a track of accountability when it concerns the finances. Not everything you do may lead to a positive or negative outcome. Finances would be a mix-bag of results and there could be both profits and losses. This is why the overall financial health of the organization is crucial to understand. Have a financial advisor in your team who has had worked with business owners in the past and has shown exemplary performance.
9. Digitize Your Paperwork
Though manual work for documentation is usually followed in every workplace, depending solely on it will drain money and resources, which can be put to a better use. You can look up for tools that digitize the paperwork. Digitizing receipts and documents can save a lot of human-time. It also means you have to hire less people to do this task, and thus save on employee remuneration.
Women entrepreneurs and leaders can certainly benefit from the above-mentioned tips to handle finances for their company. If you are a business owner yourself, then do consider these ways, and let us know how it worked for you.
Filed under: Advice