Sunday, 5 May 2013

Tips to organize your company finances

Money matters in every business. If money is managed well, the business grows. On the other hand, if the management of financial resources is poor, business goes bankrupt. Managing the money, the inflow as well as outflow is time-consuming. Following simple tips on how to organize your company finances can save a lot of time and energy. By saving on time and energy, businessmen can focus well on other areas of strategic planning to grow the business.

Here are few of the tips that can be incorporated in organization of finance:

1.       Maintain clean filling system: Do not add junk in the files by saving even the unnecessary documents. Throw out the papers, envelops, bills that have served their purpose and are no longer required. A bunch of unnecessary bills delay important activities like auditing.

2.       Make separate billing files: Make separate files for purchase and sales transactions. Files can also be separated for different vendors. Within each file, arrange the bills in a proper order. Arranging bills as per the date on which they accrue is one of the most recommended process. It makes sure that bills are not misplaced. Date wise record keeping helps quick tally of the books of accounts and actual bill statements.

3.       Tally the bank balance: Make it a habit to tally the balance in the bank at the end of every month. The total debit and credit in the bank statement should match with the transactions done in the month. Mismatch with the business records, if any should be notified and clarified with bank authorities, without delay.

4.       Adapt technology: Start using technology like online banking to save the time and resources. Online banking helps to save paper by cutting on activities like banking through cheques. Online banking is also accessible 24*7, making the instant money transfer possible from anywhere.

5.       Consolidation of accounts:  Multiple account of same nature (current/ saving) with same bank can be consolidated into one account. Do not even spread the money in different account that is needed for investments. Let the entire debit of money for investments from one account. Cancel the accounts which have not been used for a long time. Transfer the money from that account to the ones which are operated frequently.

6.       Choose Auto debit: Auto debit of money for pre-defined purpose like monthly/quarterly investments make the life easy. A reminder message facility for the debits can be asked from the banks. The most important tip to organize finance is not to delay in clearing the bills and making payments.  Always make payment on or before time. Clearing debts on time increases the credit ratings of the companies. 

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