There’s always room for improvement, and that certainly is relevant to any business when managing their money. Making a profit is ideal for businesses, but the bigger the profit, the better the company will benefit, of course. So how can you manage your money better in a business. Here are some top tips for helping you do just that!
Master The Art of Negotiation
Everything would be simpler if everyone you met within business agreed with everything you said, right? Unfortunately, that’s not always the case, but you can certainly learn your craft when it comes to negotiating. Whenever you are dealing with a contract or trying to create a deal between yourself and another company, don’t be afraid to negotiate with that particular vendor to get a better deal. You don’t get if you don’t ask and if you’re able to offer them additional work further down the line, then it’s always a good idea to lead with this information. There’s always room for negotiation, and it’s all about being assertive when possible and holding as much leverage in your hands as possible.
Make Frugal Budgeting a Habit
Budgeting is difficult to control as your business expands, and departments begin asking for more. However, as a business, it’s good to make frugal budgeting a habit, and that is something that can be implemented at any point in the business. Start by looking at the budget and find expenditures that can be queried as to how relevant they are to the business, do they help with the continued success and if not, then what’s the point in keeping it? Being strict with budgeting is something a business requires to help keep it from going under. It’s very easy to start overspending in various departments and then realizing – often too late – just how much is being spent and going to waste. Implement a strict budget and then work with your HOD’s in making sure that everyone practices the same approach to spending money.
Have a Strong Accounts Payable and Receivable Department
Whether you outsource your accounting or keep it in-house, it’s good to have a strong accounts department. They can help keep budgeting under control and to assist with making sure everyone in the company is spending and requesting money in the right way. They can be helpful when it comes to claiming back VAT and other taxable expenses towards the business.
Give your accounts team the authority to create due dates in order to get the relevant information needed in a timely fashion. Without this, staff members may take their time with certain processes, and that can end up costing the business in relation to certain fees or late payment fees from clients and other relevant companies you may pay money to.
Think About the Environment
The environment is one thing that every business should at least be aware of impacting. One such example is the amount of energy one can use as a company. So certain things like rainwater tanks can be used to reuse water and keeping printing costs low by storing files digitally are both going to help the environment. It’s also useful to educate your staff about greener living both in the workplace and out of it. Staff members may benefit from being given instructions on how to dispose of packaging and waste so that it goes in the correct bins to be recycled correctly.
Other simple things like being cautious of how much energy they personally use whether that’s sticking on the air conditioning or using electricity. Training your staff to be more eco-friendly is important, and perhaps you can offer incentives and benefits that help promote a greener working environment and lifestyle.
Clamp Down on Expenses
Expenses are something that many businesses will offer to their staff. However, some staff members may take advantage of these expenses to the extent that they’re overusing them and therefore costing the company more money than what is required. It’s a good idea to share an awareness of what expenses are available to a staff member and making sure that this is detailed instead of being too vague that they’re able to loophole past it. Not every staff member should benefit from expenses, and it should be offered as a privilege and to those who are making a serious enough impact into the company to warrant it. Like budgeting, make sure to clamp down on certain expenses and to be more specific on what is allowed and what isn’t. That way, there’s no confusion and money can hopefully be saved in the process.
Make Financial Projections
The most important part of any business to manage their money better is to make financial projections. This is especially good when budgeting for the company because if you can estimate how much each department will need as a whole, you’ll likely save yourself more money as a company. These financial projections are usually in your business plan, and this plan needs updating every so often. A lot can happen in a short space of time, and that means objectives and goals for the company may need ticking off and replacing with something new. Financial projections will help correctly estimate the best budget for the company and that way, you can hopefully make the relevant decisions to improve and keep the business moving in an upward trajectory.
Now Get Your Business into Tip-Top Financial Shape
Running a business is tough, and being able to manage money successfully is something that requires a lot of skill and lessons learned in the process. Master the art of negotiation to get a sweeter deal and don’t be afraid to back down. Get frugal with your spending habits and get help from a strong accounts team. Keep the environment in mind when it comes to reducing costs and clamp down on expenses. Make financial projections where possible and always be working on how it can be changed to include new future projections and objectives. The more money you can save, the better after all!
