Tag Archive | Financial Management

Digital Tools Business Owners Cant Miss Out On

Modern businesses need to get digital if they want to keep up in a fast-paced world. Whether your business is just you or you manage a team of employees, you need to stay current so that you can compete with others in the industry. There are many digital tools that can be extremely useful for businesses of any size. Networking Communication Internet Digital Networked

As your business grows, you might change the approach you take to different areas of your business.

For each element, you can find different tools suitable for managing businesses of varying sizes.

If you need to make your business more digital, try these tools and see your business grow to the next level.

 

1. Communication

Communication is the key to good business, whether you’re communication with your employees, customers, or business partners.

How we communicate has changed a lot over the last hundred years, and even over the last ten. There are now lots of convenient ways to communicate online, from sending emails to making video calls.

Email is still an essential way of contacting people, even with tools like instant messaging available. For businesses, being able to manage contacts and email lots of people is essential.

Email management and marketing tools like MailChimp and Constant Contact are essential digital tools to consider.

 

2. Information Storage and Management

Any business or organization needs to store information and data of some kind. Some businesses might deal with more information than others. Everything was once done on paper, but there’s no need for that anymore.

Modern businesses should make sure they’re using digital methods when they can, especially because it’s more environmentally-friendly. It also saves space and money.

For businesses dealing with a lot of information, there are enterprise records management services that can help.

They can store your records both physically and digitally, and allow you to view them digitally when you need to. Smaller companies might only need a cloud storage system, such as Google Drive or DropBox.

 

3. Financial Management

Managing money is, of course, one of the most important parts of running a business. Digital tools make it easier to do it with accuracy and could mean that people running smaller businesses don’t need to hire an accountant or bookkeeper.

While many small business owners start off managing their accounts using a spreadsheet, they often quickly move onto something more sophisticated by still easy to manage.

For example, Quick-books is a popular choice to manage finances in an easy manner. It makes it easier to keep track of everything and to send accounts to an accountant when it’s time to do your taxes.

 

5. Productivity

Businesses need to focus on being productive if they want to make the most of the time they have. Maximizing productivity is something many business people strive for.

They want to be as productive as they can in shorter periods of time, instead of having to spend all hours getting work done.

Whether you’re a single person running a business or you have employees, you can find digital productivity tools that are useful for your business.

One major thing that helps productivity is being more organized, which is why many business people use tools like Evernote.

It can also be useful to automate certain tasks to cut out unnecessary effort. For example, a tool like ITTT (or If This Then That) helps to automate work flow so that when one action is performed, another follows.

 

6. Marketing and Promotion

Promoting your business is at the core of its success. If you can’t get the word out, you can’t find new customers and keep your current ones. There are various digital marketing tools that can be very useful for businesses of different sizes.

 

 

Some of them can cross over with areas like communication, such as MailChimp. Other digital tools include Google’s platforms, like Adwords and Analytics, which help businesses to advertise and to analyze their website traffic.

 

7. Customer Relations

Relationships with customers need to be managed so that each customer can remain a valuable asset to the company. There are lots of tools that can be used to manage sales, customer contact, and customer relations digitally and online.

For example, Salesforce provides a number of customer relationship management solutions for businesses of different sizes and industries.

Nimble is particularly suitable for small businesses and combines customer relations with social media.

Businesses should look for the digital tools that meet their needs when it comes to customer relationship management.

If you’re not already using a variety of digital tools for your business, you need to consider which ones are right for you. You could improve your business in a number of different ways.

4 Reasons Why Bookkeeping Is Important to SMEs

 

 

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Many entrepreneurs operating big or small businesses often overlook the bookkeeping aspect of their enterprises.

Without proper business records, it becomes difficult to predict the future of your business since there is no clear information that stipulates the financial health of your business.

 

Bookkeeping refers to the practice of recording all the financial transactions such as purchases, revenues, sales, receivables, payables and receipts in an orderly manner as per the accounting procedures so as to facilitate sound financial planning.

In any business entity, the most common business  records that should be kept includes; cash book, profit and loss account, balance sheet, sales invoice, debit book, cash payment vouchers, bank transactions, assets records, inventory and payroll records among others.

Recent research has indicated that majority of business failures have been contributed by lack of proper bookkeeping practices despite having brilliant business ideas.

Therefore, this article aims to enlighten every entrepreneur why proper bookkeeping practice is very important for their business growth.

1. Bookkeeping is used to make Business Forecasting

When you have clear business records, it enables you to make sound future projections. Based on the information at hand, the entrepreneur is able to scrutinize the business financial health which aids in proper budgeting reflecting the business growth rate.

You will be able to prioritize your business needs as well as allocate reasonable funds to various departments.

2. It serves as a tool for sound financial management

Bookkeeping forms the basis of financial analysis and management. From the accounting records, the entrepreneurs can be able to assess the financial position of their businesses based on cash flow data recorded.

This enables the concerned parties to make the necessary changes to adjust any irregularities.

Thus, business owners are able to keep up-to-date records which include; on-time invoicing, filing of taxes and payment to suppliers a practice that makes the business more competitive.

3. Bookkeeping is a necessity when applying for funding

With clear records of books of account, your business history is easily determined and investors will have more confidence to invest in your business as opposed to a business that has no clear track records.

When you approach a bank or any other potential investors, you will be required to produce trusted documents showing your business Balance Sheet, Statement of Income among other for you to qualify for funding. Thus, proper bookkeeping practice makes this process easy.

4. It is a statutory requirement

Any business that is in operation is obligated to file its annual tax returns as outlined by the law. For you to file tax returns, all the necessary details showing your annual business activities are consolidated through bookkeeping so as to determine the amount of taxes that your business is supposed to file.

Therefore, preparing and keeping up- to- date Balance Sheet, Profit & Loss account and Cash Flow statements help a lot  in tax planning for your business and facilitates convenient auditing inspection exercises to ensure  statutory compliance.

 

 

Personal Financial Management Tips

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Every day in life we wake up early and work harder so that we can make our life better than yesterday. We can only achieve this through a sound financial freedom guide.

 

Do you often have challenges in managing your hard earned cash? Which criteria do you use to allocate funds that you spend on bills, food, traveling, vacation, savings, and loan repayments?
If you fall under this category, then this piece is for you. What entails an effective personal financial management? The below tips will help you appropriately account for your personal finances and help you live within your means.

1. Develop your own Budget

This is the most important step that you need to make as it will help you come up with a financial breakdown of all your incomes as well as expenses.

When you create your budget, you will be able to keep track of all the incomes such as salary, pensions and other benefits that you receive at the end of every month.

In addition, it will be easier for you to know all your expected expenses such as rent, insurance, mortgage, food and other miscellaneous expenses.

Developing a budget will help you come up with a record analysis giving you a well-structured breakdown on how you allocate your finances to various priorities and needs.

Therefore, from the budget, you will have the opportunity to assess your current income against your expenses and, therefore, decide on whether to revise it or not.

2. Have an investment/savings goal

It’s always a challenge to set aside money for savings while you have other needs to attend. Many times you will end up using your savings rather than holding it tight. The only way out towards overcoming this is to come up with a savings/investment plan.

What is it that you want to buy or acquire either in short or long term? You can decide to save in order to purchase a car, buy a new house or to prepare for your retirement.

When you develop a savings objective will be more motivated to allocate appropriate finances so that you can achieve your short-term and long-term needs.

3. Use credit cards wisely

If you are a credit card lover, you will agree with me that you can easily pile more debts within a short period of time.

In case you realize that your debts accumulation rate is much higher than your ability to service your debts, know that you are living on more than what you can afford.
You should always consider paying off your debts as soon as possible to avoid higher interest rates charges.

4. Purchase an insurance policy

Allocating money to buy an insurance policy will save you a lot during seasons of financial hardships. Insurance cover will ensure that you remain protected from any unforeseen contingencies thus improving your financial confidence.
Always research for the best reliable service providers that will guarantee compensation that is equal to your premiums.