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1. Budgeting: Plan your finances
Creating a budget is the first step to effective financial management. A budget allows you to keep track of your expected income and expenses, which is essential for maintaining financial stability.
Set goals: Decide what you want to achieve (e.g. investing in marketing – the Google Garage course will help you – Promote your business using online advertising , or purchasing equipment).
Map out your income and expenses: Write down your expected income from selling products or services and list all fixed and variable expenses.
Work with categories: Divide your expenses into categories such as marketing, operating expenses, salaries, or supplies, and monitor whether you are exceeding the limits set.
Practical tip: Use tools like Microsoft Excel , Google Sheets , or apps like Caflou to make it easier uk phone number data for you to create and manage a budget.
2. Cash flow management: Keep track of your cash flow
Cash flow is one of the most important indicators of your business's financial health. Even a successful company can run into trouble if it doesn't have enough cash to cover its short-term obligations.
Principles of effective cash flow management:
Regularly monitor your money movements: Keep track of when and what income and expenses you expect. You can use the online tool Caflou , for example .
Build a reserve: A reserve of 3-6 months of operating expenses will help you cope with unexpected expenses or income shortfalls.
Speed up payments: If possible, shorten the invoice due date for your customers and consider offering discounts for prompt payments.
Cash flow management tools: Apps like iDoklad , Fakturoid , or Caflou allow you to track invoices, payments, and cash flow in real time.