In moments of crisis, we realize that companies with good financial management tend to feel less. Already small, medium and large entrepreneurs who do not practice good financial management practices go through crises fearing closing the doors of their business. Some even do.
But in this kind of period, despair will only be detrimental. The essential thing is to make a very strong financial management since always to avoid future disorders. If you still do not, why not start now?
In times of crisis it is essential to have the balance of accounts to help you clear the way of this phase and guide you to the next steps of the company. If you see financial management as extremely complex, we've listed five tools that can simplify and help you with this.
Cash Flow Management
Control cash flow is one of the main activities you need to accomplish, not just in bad times, but often. Balancing how much money goes out to pay bills and how much sales goes in is essential so there are no surprises in the final accounting of money.
A spreadsheet cash flow will help you much more than just controlling the recipe. It can help you to define all the launches and analyze all company accounts to analyze your brands to beat targets and is doing harm.
Calculate the accounts you have to receive
A accounts receivable worksheet can help you in managing balance in times of crisis. Many customers buy products and services on time, so have this control to know how much positive balance will come into your account next month.
This tool allows you to control of their inputs and the flow of receipts and consequently know the best time to count credits for your company as well as know how much you are earning per month.
Calculate accounts payable
In the same way that you have accounts receivable, you must also have those to pay as in expenses with maintenance, purchase of products and other services. An accounts payable worksheet is essential to maintaining control over the outputs of your company's resources.
You need control the amount of accounts payable so that this expense is not greater than the amount you will receive. In addition, you will have a daily balance of expenses avoiding superfluous expenses.
Keep your balance in the budget
In order to design and control the company's expenses divided into sectors, it is necessary to acquire a business budget worksheet. With it you will know how much you will need to spend on the new investment as well as will have an understanding of how much the business should thrive.
In addition, you will have how to allocate expenses, distributing monthly to maintain a balance to avoid spending more than you can at the moment.
Have a margin of contribution and profitability
When it comes to managing your accounts in your company, it is crucial to know how much profit it represents in the context of your company's billing. THE management of its contribution margin will help you understand how close you are to your breakeven. In other words, start to make a positive profit.
That way, you will have a sense of how much revenue will be put toward fixed and variable expenses and how much will be for profits, keeping your business and your personal life always healthy.