How to organize your business finances? 7 tips for beginners
Posted: Mon Jan 20, 2025 8:37 am
Financial problems can leave many new entrepreneurs with their hair on end! Finances are the heart of the company and must be organized from day one.
That's why we've brought you 7 tips for organizing your business' finances, especially for those who want to open a company or are taking their first steps into the world of entrepreneurship.
7 tips for organizing your business finances
1) Separate personal and business accounts
There's no point in doing so. Anyone who gives you advice on how to organize your business' finances will tell you to separate your personal and business accounts . This is the basics for having a healthy company and greater control over your budget.
When everything is in the same account, the chances of using the business's money to pay personal debts, and vice versa, are very high and this can cause serious problems in the future.
Therefore, keep separate accounts and leave everything kenya phone number lead linked to your company in a specific location, so that each movement is made more appropriately and monitored, without any mix-ups.
2) Develop a business budget
Lack of planning is one of the main reasons why companies have financial problems. Creating a business budget can help you organize your business finances, as it determines the amount of resources that should be allocated to each area, the payment of taxes and salaries, and the making of investments.
This way, you can think strategically about money, have more financial security and make medium and long-term plans. Not to mention that you will understand points where you can reduce costs.
3) Do the cash flow daily
Cash flow is an essential element for organizing your business' finances. In fact, no company can survive without recording all financial inflows and outflows and controlling the origin and destination of finances. And there's no point in doing this at the end of the month; this should be a daily habit.
After a few months of doing the cash flow daily, it is possible to understand the cost matrix of the enterprise and how the receipts occur.
With this data in hand, you can project future expenses and earnings. And that's where the magic happens: you'll have much more control over your business, be able to prepare for periods of low demand and make the most of periods of high demand.
How to organize your business finances?
4) Modernize yourself
Most entrepreneurs need to take care of several areas of the company at the same time, such as finance, marketing, sales and HR. And this can get in the way of organizing your business' finances. Therefore, use technology to your advantage and modernize your financial organization.
There are options on the market, many of them free, to automate sales, cash flow, bills that need to be paid and much more. You can move away from basic spreadsheets and take advantage of these software and applications to optimize your time and focus only on what really matters.
5) Prepare for the unexpected
If you are an entrepreneur, you will face unexpected events. A supplier may increase prices, a computer may break, rent may increase, there is no way around it. Although these situations cannot be avoided, they can be controlled and overcome.
A good entrepreneur is one who prepares for them and ensures an emergency fund for themselves and their business. That's right, ideally you should have a personal savings account, in case you get sick or something unexpected happens at home, and another to solve the company's problems.
6) Reinvest in the business
This part is essential for organizing your business' finances and many entrepreneurs do not take it into consideration. Even if the initial investment covers all the company's needs, you will need money to expand, change some furniture or buy new machinery.
In our feasibility spreadsheet , we add all the possible expenses that may arise over time with the use of the equipment and other needs, so that you can plan and prepare for all the possible expenses that may arise over the years.
That's why we've brought you 7 tips for organizing your business' finances, especially for those who want to open a company or are taking their first steps into the world of entrepreneurship.
7 tips for organizing your business finances
1) Separate personal and business accounts
There's no point in doing so. Anyone who gives you advice on how to organize your business' finances will tell you to separate your personal and business accounts . This is the basics for having a healthy company and greater control over your budget.
When everything is in the same account, the chances of using the business's money to pay personal debts, and vice versa, are very high and this can cause serious problems in the future.
Therefore, keep separate accounts and leave everything kenya phone number lead linked to your company in a specific location, so that each movement is made more appropriately and monitored, without any mix-ups.
2) Develop a business budget
Lack of planning is one of the main reasons why companies have financial problems. Creating a business budget can help you organize your business finances, as it determines the amount of resources that should be allocated to each area, the payment of taxes and salaries, and the making of investments.
This way, you can think strategically about money, have more financial security and make medium and long-term plans. Not to mention that you will understand points where you can reduce costs.
3) Do the cash flow daily
Cash flow is an essential element for organizing your business' finances. In fact, no company can survive without recording all financial inflows and outflows and controlling the origin and destination of finances. And there's no point in doing this at the end of the month; this should be a daily habit.
After a few months of doing the cash flow daily, it is possible to understand the cost matrix of the enterprise and how the receipts occur.
With this data in hand, you can project future expenses and earnings. And that's where the magic happens: you'll have much more control over your business, be able to prepare for periods of low demand and make the most of periods of high demand.
How to organize your business finances?
4) Modernize yourself
Most entrepreneurs need to take care of several areas of the company at the same time, such as finance, marketing, sales and HR. And this can get in the way of organizing your business' finances. Therefore, use technology to your advantage and modernize your financial organization.
There are options on the market, many of them free, to automate sales, cash flow, bills that need to be paid and much more. You can move away from basic spreadsheets and take advantage of these software and applications to optimize your time and focus only on what really matters.
5) Prepare for the unexpected
If you are an entrepreneur, you will face unexpected events. A supplier may increase prices, a computer may break, rent may increase, there is no way around it. Although these situations cannot be avoided, they can be controlled and overcome.
A good entrepreneur is one who prepares for them and ensures an emergency fund for themselves and their business. That's right, ideally you should have a personal savings account, in case you get sick or something unexpected happens at home, and another to solve the company's problems.
6) Reinvest in the business
This part is essential for organizing your business' finances and many entrepreneurs do not take it into consideration. Even if the initial investment covers all the company's needs, you will need money to expand, change some furniture or buy new machinery.
In our feasibility spreadsheet , we add all the possible expenses that may arise over time with the use of the equipment and other needs, so that you can plan and prepare for all the possible expenses that may arise over the years.