Are you running a business or are you just starting? Businesses must be well planned to keep running and growing. Of course, the intention to start a business is not just playing around, right? There is a future to aim for so that business becomes more focused. With the kibo code quantum, it will be easier for you to manage your business because with it you can find a very easy method to run a business.
In managing business finances, many right ways can be done. Therefore, avoid common mistakes like the one below.
1. Not Recording Financial Statements
Every expense and income should always be written into financial records. What will happen if you don’t? Every transaction with a customer must be properly recorded so that cash flows appear clear and logical. If there are transactions that are missed to be recorded, later it will make the financial statements unbalanced.
2. Mixing Business Funds with Personal Funds
The next mistake is not separating personal funds from business funds. The mix of funds will make business income and expenses unclear and confusing. Business profits that should be used for business purposes are instead used for personal needs.
This will be detrimental and make it difficult for you to calculate it in financial reports. Therefore, make a special account for business so that it is separate from personal accounts. This is intended to support the smooth running and development of the business in a better direction.
3. Messy Cash Flow
Do you know that good cash flow has a big impact on business development? Irregular cash flow due to careless use of money will make you experience losses. Therefore, it is very necessary to prepare a financial budget regularly and be wiser in using business capital. The money provided for the business must be clear what it will be used for.
Many people don’t understand this, so the business goes awry. If you have a budget, run it obediently and discipline. Make logical and frugal expenses to make it more profitable. The profits you get can later be saved as an emergency fund so that it doesn’t involve personal funds or debt.
4. Not Understanding Knowledge of Finance
Even though you have used the services of an accountant to take care of finances, you should understand the basics of economics and accounting knowledge. Read more related books so that you don’t miscalculate the business. Don’t forget that the accountant’s report cannot be swallowed completely because you need to check and evaluate it again.
Not only from writing, be diligent in asking friends who have a business so that they can better consider their strengths and weaknesses. For example, if you need a loan, you should know how much you need and what the money will be used for. By knowing this, it will minimize operating expenses and the use of money will be more optimal.