How do you manage business finances?

[Stardom22]

When we run a medium and small business, whatever the form, both online and offline, but we cannot calculate the losses or profits earned every month, of course there are irregularities in managing finances. I also often meet the finances of small and medium entrepreneurs, there is no separation between personal money and business money, for example taking goods/money for personal use. Meanwhile, personal withdrawal will reduce capital and increase income as a percentage. It will be different if you earn your salary from working on your business, which is treated as an expense and will reduce business profits and will also reduce income taxes. So business finances need to be managed properly and correctly, so that your business will run smoother.

In a matter of fact, this is the main problem that affects the entrepreneurs for the small and medium sized businesses.
Myself being one of them I couldn't do this while running my Kiosk no wonder it collapsed.

 

[Niyi Briggs]

When you don't alienate yourself as the business owner from the finances of the business, it is a recipe for disaster as you might be tempted to act impulsively with company finances.

 

[Suba]

I often encounter small and medium entrepreneurs who do not record transactions, both cash income and expenses, and many of them do not separate personal money from business money. Even though the sales rate is high, because there are many accounts receivable that have not been received, and personal expenses are high, the business cannot run smoothly.

 

[Niyi Briggs]

I often encounter small and medium entrepreneurs who do not record transactions, both cash income and expenses, and many of them do not separate personal money from business money. Even though the sales rate is high, because there are many accounts receivable that have not been received, and personal expenses are high, the business cannot run smoothly.

I don't know how an entrepreneur experts to track finances and manage them without having proper records. And some of them say that it is stressful to keep the records. Those kind of entrepreneurs easily crash.

 

[Suba]

I don't know how an entrepreneur experts to track finances and manage them without having proper records. And some of them say that it is stressful to keep the records. Those kind of entrepreneurs easily crash.

That's a reality that I often encounter, I often educate them on the importance of recording every transaction, be it in the form of cash or taking merchandise for personal use, especially now that there are many applications that make their recording process easier.

 

[Niyi Briggs]

That's a reality that I often encounter, I often educate them on the importance of recording every transaction, be it in the form of cash or taking merchandise for personal use, especially now that there are many applications that make their recording process easier.

Most of them also don't want to inculcate banking culture. It is a little bit easier to track your finances if you bank your money. Most of them keep carrying cash and running business till it melts all in their hands.

 

[cherry123]

The best bet will be to have a separate account for your business so that you can run it a lot more effective than having just one account for both personal and business