Finance planning: Often you can hear from a novice entrepreneur: I went to the plus, began to make a profit. You rejoice for a person, ask questions, want to understand how much success is in the second month of activity.
It turns out that “went into a plus” means that current income began to exceed current expenses, and no one thought about returning the initial investment – invested and invested. Finance planning
And what, can they be “pulled out”? Or, for a long and stable family business, taxes are “considered” by an accountant on outsourcing, someone from the owners who has the time manages the payments.
And everything seems to be fine, there is income that the family lives on, there is business development, but if you dig a little deeper, not all expenses are taken into account, because we already spend money on it. Finance planning
Finance planning: 3 Steps To Help You
Everybody forgot about the money invested once – yes, how much we invested there (and how much you “brought” in the process!), And so on. “Well, I’m neither an economist nor an accountant, and I don’t have money to pay a salary to a financier, I think this is unnecessary, I can handle it as I can.”
Of course, in order to look in the face of his real financial picture, certain courage is required. And, of course, knowledge and skills. But, after all, finance is a “flight control center,” is it really not worthy of the closest attention and qualified management on our part?
Here are 3 simple steps that I suggest you take to achieve simple management of your finances, in other words, financial literacy. Finance planning
Step 1. Make a decision to live with open eyes and see the real financial situation.
This will make it possible to make the RIGHT business decisions in the future. It doesn’t matter, these are decisions regarding three thousand or three million hryvnias.Finance planning
Step 2. Explore Options for Managing Your Online Business Finance
Or consult with a specialist you trust. Then you will know exactly what you need to do to achieve this goal. Finance planning
Step 3. Choose the form and method of financial management of your business
Correctly enter the source data and start to see your finances in real-time and manage them. It sounds complicated, but you can “eat” this elephant in parts.Finance planning
Firstly, there are several fairly successful programs of varying degrees of complexity, such as Andro Money, Money, Money Lover, and many others. Free and paid versions, a very different set of functions and features, more details can be found in any review on the Internet.
If you trust gadgets and programs more than yourself, then this is your option. The main thing is to tame the program so that you can see everything you want to analyze, tighten up the incoming and outgoing cash flows, and really use the analysis to make decisions.
Secondly, you can outsource this task for fairly little money. Now many good financiers provide financial management services online, in this case, it is important to find someone to whom you can entrust your financial picture completely and establish normal communication so that the data you transmit is exhaustively complete, otherwise the picture will be false.Finance planning
The advantage of this option is that you do not spend your time entering and processing data, they give you a ready-made result or analysis, but this is also a minus since you no longer feel your budget, and in many respects, you will have to rely on the opinion of this very specialist.
And thirdly, you yourself (or yourself), your head and hands are in place, and no one canceled smart spreadsheets. Here, however, you will have to work harder at first, but if you correctly formulate principles for yourself, you will carefully approach planning and budgeting (yes, it’s really not difficult, gods don’t burn pots!),
You will form the skill to keep your budget and analyze in your convenient way, when and wherever you want, you will find true financial freedom. Because you will have an objective picture, taking fully into account the characteristics of the business and personal.
I myself went a long way from building reports in Excel to a large and complex program (SOUP), under which the financial department “grew”. With the growth and scaling of the business, this is almost inevitable.
There were a lot of feats, obstacles, and even dragons, mainly related to the notorious human factor. Now, having passed this experience, being an individual entrepreneur, and providing professional services, in the end, I chose my own path and responsibility in financial management.
Now no one better than me owns such a complete financial picture, while I spend on it no more than 10% of my working time.
You can learn financial literacy and financial management, it is accessible and interesting, and will give you a sense of “manageability” for your business or organization.
I am working on a book and video course called Simple Finance, which will explain step-by-step how to take control of my money in a business or organization, manage it simply, consciously, and with pleasure.