Do you feel like you’re spinning out of control?
As business owners we are constantly subjected to a bombardment of economic views (good or bad): unemployment rates, debt levels, consumer confidence or policy changes.
There are a few things we know for sure, some statistics are accurate, some are wildly inaccurate, some predictions will come to pass and others won’t.
Whether any of this will make a significant difference to our lives is difficult to predict. From past experiences, the vast majority of business owners will complain about the terrible circumstances, yet in five years’ time, we’ll look back and say it wasn’t actually that bad.
There’s one more thing that is certain, we have little direct control over any of these issues.
Today, I would like to suggest four aspects of your financial management that you can take control of to make a positive difference in your life (you may even be able to sleep at night!).
- Keep your financial data integrated.
- Keep track of your expenses.
- Keep it real.
- Embrace technology.
Having records spread over multiple systems or filing cabinets is never an efficient way to organise records, so by designing your accounting system to bring everything together, you’re more likely to maintain reliable financial information.
It is surprisingly easy for your expenses to get out of hand and turn your profitable business into one that has significant debts (usually to the tax office). Formulating a budget, and keeping accurate and timely recording of all expenses will help to keep you on track.
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If your financial records are more than two weeks old, then chances are they don’t reflect the real position of your business. You need to make sure that all transactions are regularly and accurately recorded to make sure you know where your business really is financially.
We are all aware of the pace of technology, particularly in the area of smart phones and tablets. The computing power that we carry around in our pockets is more than the computing power that sat on our desks a mere ten years ago.
Whatever the economic conditions (whether real or imagined), controlling the financial resources of your business is one way to safely negotiate through any rough patches.
How do you stop yourself from spinning out of control in uncertain times?