One of the most common causes of business failure is inability to monitor and organize personal and business finance.
It’s especially hard as a small business owner (who is dealing with all aspects of the business, including product/service planning and development, recruitment, marketing, sales and purchasing etc., to organize and keep track of the business finances.
Financial resources are critical to personal and business growth.
Here are three ways you can monitor and organize them:
- Stay Healthy
Studies show that that entrepreneurs’ rarely perceive their health as a resource for business performance. One of the best ways to monitor and organize your personal and business finance is to stay healthy. Health is indeed wealth; no one thinks about personal and business finance on the sick bed. The business world requires mental and physical energy to accomplish daily tasks.
You can stay healthy by engaging in regular morning exercise, watch what you eat (don’t skip breakfast because it’s the most important meal of the day), and go for regular medical checkups. It’s also wise to use health insurance in order for you and your business to stay healthy. Sickness and accidents are inevitable but avoidable. Make sure that your business has the right amount of professional liability insurance, property insurance, workers’ compensation insurance, product liability insurance, vehicle insurance, and home-based business insurance if you’re running your business from home. To deal with healthcare related expenses these days, which are sky-rocketing, every entrepreneur needs to secure his/her business with an adequate health insurance plan that goes with the business.
- Install Security Systems to Prevent Theft
Employees’ theft and mismanagement of business resources are sure ways of depleting business finance. Study shows that the typical business will lose an average of 6 percent of revenues from employee theft and that small businesses suffer disproportionate losses because of the limited resources they have to devote to detecting fraud.
You need to install security systems in your workplace to prevent theft and mismanagement of your business resources. Security cameras are recommended to keep an eye on all the activities in your workplace. Mere installation of spy cameras will help achieve orderliness and discipline in workplace since everyone knows that he/she is been watched. Using GPS to track employees in employer-owned vehicles is a great strategy to curtail the use of company’s vehicles for private businesses.
Installing software on desktops, notebooks and cell phones is a viable option to curtail employees’ theft and financial recklessness in workplace. Do you know you can spy on a cell phone without having access to the phone? This is particularly necessary in the finance department to monitor and track smartphone actions. These apps can save your company from unscrupulous employees who are hell bent on siphoning your business finance.
- Use Business Finance Software
The advancement of digital tech has really helped in the development of finance and accounting apps and software that have assisted business owners in keeping tabs with their personal and business finance.
For instance, QuickBooks accounting software helps you run your business and provides a full sense of your company’s financial health. You can use it to track your business’s sales and expenses; view financial statements, such as profit-and-loss reports; pay your employees and vendors; track unpaid invoices; and much more. It connects to thousands of accounts — including your business bank account, credit cards, PayPal and Square — and uploads data from these sources seamlessly. It also makes doing your business taxes much easier, as it tracks your expenses and lets you upload photos of receipts with your phone.
Personal finance software makes it easy to consolidate all of your financial data in one program so you can create and track a budget, examine your investments’ performance and generate reports to analyze your assets.
There has to be sufficient finances when it comes to business – be it large or a small one.
There are numerous business-related expenses, almost every day, which you must track in order to ensure that your business does not suffer in the long run.
For this, you can either purchase a finance management tool or employ a finance expert to handle the financial transactions.
Richard Agu is a Researcher, Entrepreneur and Freelancer, passionate about entrepreneurship and self-development. Currently, Richard writes for Entrepreneur.com, Goodmenproject.com, among others. Follow him on Linkedin.com by clicking here now.
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