One of the key successes in running a business is the capability of managing finance. To make this task easier, at present many business owner start to apply the accounting software. This accounting software is not applicable for large sized enterprise, but also for any business scale and fields. Moreover, understanding the accounting software has became one of the subjects delivered in the higher education. Financial management is no longer complicated as before.
There are a number of issues that must be recognized, because when these factors are ignored will lead to financial mismanagement:
- An-organized transaction notes
- An integrated and automatic financial records are not available
- Rely on the internal capabilities only and ignore third party (eg. Banks)
- Lack of planning/financial budgeting
- Ignoring the business/entity principles
These are the identification in managing finance easily :
- The right start will lead the process easier. To manage it properly, make sure to separate the transaction note from the very beginning. Separate the transaction notes based on the transaction types and date. This practice not only makes your transaction entry easier, but also you are no longer focus on the messy note.
- Recording transaction manually is no longer able to accommodate the fast growing business, complicated transaction numbers, and increasing customer request. Accounting software is your best solution. All you need is to enter the data and the program will process them and generate relevant information. Managing finance easily are as follow:
- Cash management.You must have a precise control in managing cash. Cash is the most liquid account. The more cash value does not mean your financial position is good, but it can be said its turnover is bad because cash is not fully used. Thus make your cash balance to financial events such as expenses and receipts. Using the system allows you to monitor the incoming and outgoing cash from the ledger or more specifically in the Cash Flow Statement of operating, financing and financial activities.
- Accounts receivable and payable management. Receivable and payable balance shows that your business is active and the cash is not idle. However many receivable and payable do not mean your business is running well. Make sure your business has set the right deadline to settle the business payable before the due date as well as billing to customers in order to avoid losses. By using the system you can monitor the accounts receivable and payable calendar in the form of accounts receivable age.
- Inventory management. Managing inventory is very crucial, as it will affect your business operations. Therefore, continual monitoring is required. Apply the systems which able to control inventory directly from inventory reports (eg stock cards) including how to make inventory adjustment at warehouse and listing from Stock Opname facility.
- Financial statements availability Understanding the Balance Sheet Report and Profit / Loss Statement for a certain period, you can recognize the company’s financial position and performance. Balance sheet and company profit / loss statement evaluation can be performed in certain periods such as monthly, annually or daily.
- Even a big companies could not be able to manage its finance “alone”. The bigger the business scale, the more parties required as business partner, such as bank. Use a “business solution” service that enables you to speed up the transactions related to the bank. Besides banks, you also need a financial and tax consultant. The faster the transaction info and guidance obtained from third parties, the faster influence to your business services, for example to the customer. Surely you still have to supervise them.
Apply the financial management knowledge. The cost budgeting is needed to avoid over expenses. If you ignore this, you will lose your money and business.
