How to Manage Finances for a Startup Business

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IDNBC.COM - Finance is something that must be managed properly so that expenses can be overcome. Wrong financial management will certainly have an impact on business conditions where funds are important for the survival of a business.

Good financial management must be carried out with great care, so that income and expenses can be better monitored. There are several ways that can be done for financial management for start up companies or other small companies. Here are some ways to manage finances:

1. Make a budget to manage finances


Making a budget is very important to do in starting a business.

Financial budgets can be used to control business finances.

For small expenses, always use petty cash. Petty cash is a small amount of budget spent for small expenses such as for buying stationery and papers.

Always try to keep every proof of expenditure. 

Besides being kept as archival evidence, proof of expenditure can be used to determine price developments of goods that are often purchased so that the budget can be adjusted according to expenditure.

2. Make a financial plan to manage finances


Financial planning is important to be made to know spending and income.

Financial planning can be used to determine how to get income and how to manage the income. 

In addition, the financial plan is also used to determine the expenditure plan.

Make short-term and long-term plans, especially for expenses such as paying taxes and installments.

Making a financial plan will make you more organized in managing finances.

3. Make cash flow to find out how to manage finances


Cash flow can be used to find out how your money is flowing.

Cash flow makes you know for certain about spending your funds and manage finances better.

Funds that enter and spend in finance will be more closely watched and certainly the flow of funds is clear. 

If you find it difficult to do cash flow calculations, you can use the services of an accountant.

In addition, you can also recruit workers who are experts in finance.

4. Using computers, especially accounting software to manage finances


There are many software or applications that can be used to manage your finances.

Basically you can also use a computer program like excel to help with your financial calculations.

For an easier way, you can use accounting software that can easily help you manage finances precisely and more thoroughly. 

In addition, you can get financial reports automatically by using accounting software.

Using accounting software can also save you time in calculating financial statements.

5. Set aside income to pay installments


Companies also often need additional funds obtained from banks.

Setting aside income to pay installments can make banks have credibility in the business.

It is important to maintain the trust of the bank in relation to the loan given, so that the bank can lend funds whenever needed. 

In addition, setting aside income to pay off debt or installments can make spending more stable and less burdensome.

By setting aside income is also expected to be able to manage finances well.
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