How Should I Structure The Financing Plan For My Business?
Sound and practical financial management skills are essential to succeed in life. Whether you are an entrepreneur or manage a household, your ability to manage money effectively is crucial to your journey to the top. For a startup, running out of cash could be detrimental to your business. Here are 12 tips to help you become financially empowered as a business owner.
- Separate your personal finances from your business finances
- Open a Bank account in the name of your business.
- On the bank deposit slip specify the name of your client instead of your name or staff name.
- Collect and review your bank statement monthly.
- Have a planned financial outcome of what your business wants to achieve for the year.
- Set up a basic record keeping system for your business.
- When the money in your business account is substantial, invest it.
- Collect receipts for all payments made.
- Make personal expenses from your personal account not business account.
- Keep all receipts, invoices and financial documents even before you start trading.
- Issue an invoice for all sales made.
Issue a receipt for all monies (cash, cheque, and e-payment) received.