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Table of Contents
- 1: Understand your cashflow dynamics
- 2: Review & update your financial plan regularly
- 3: Seek help from an accounting professional
- 4: Keep your growth finance calculations ready
- 5: Reduce your Debts
- 6: Select a suitable business loan
- 7: Automate your bill payments
- 8: Increasing Market Awareness
- 9: Protect your business against fraud
- 10: Go Paperless with your company
1: Understand your cashflow dynamics
Measuring expenditures and return on investment can help you determine which investments are worthwhile and which should be discarded. Focus on the return on investment (ROI) associated with each of your purchases.
If you don’t do this, you risk losing money on investments that are either irrelevant or terrible. Know where you’re putting your hard-earned money and how well it’s working for you. If it isn’t paying off, reduce your spending and focus more on the initiatives that benefit your company.
2: Review & update your financial plan regularly
One of the smartest financial decisions you’ll ever make is to formulate a strategy for your money. Creating an initial plan, though, isn’t enough. It’s also important to evaluate and update your plan frequently.
Return to your plan at least once a month to get its benefits. It should be updated anytime a big event occurs, such as a significant shift in market conditions or the establishment of new goals, etc. A solid start might get you going, but persistence is the only way to ensure good results.
3: Seek help from an accounting professional
Determine your tax liabilities based on the type and structure of your company. Hire a professional to assist you in understanding the different paperwork you must submit, as well as GST deadlines and payments. Then work backward to account for it and set aside the necessary funds as soon as possible.
Work with your chartered accountant to learn about the tax breaks available to your company and how to apply for them.
Keep track of any invoices that contain TDS, so that you can properly claim deductions. This assistance is especially vital when your company is still in its early phases, as understanding corporate finances takes time unless you have prior knowledge.
It’s preferable to put the tax money aside right away and not mix it up with the rest of your business money. You’ll avoid penalties if you set aside at least 90% of your previous year’s taxes.
4: Keep your growth finance calculations ready
Growth opportunities frequently appear out of nowhere. You have a certain amount of time to make a decision. Therefore, it’s beneficial to have cost estimates for your future growth readily available. Growth finance involves deciding where debt, equity, and hybrid financing approaches might be used and are very helpful to have on hand ahead of time.
A financial strategy, in addition to your growth matrix, can help you describe how you will reach your goal and what the estimated monetary gain will be.
You should have the paperwork ready for how much money you’ll need to expand your company from both internal and external sources. This can be accomplished by looking over the past year’s profit and loss statements and balance sheets.
5: Reduce your Debts
Carrying over current-year debts to the next financial year is never a good idea for a business. Before you take out a loan, make sure you have a well-thought-out debt repayment strategy. It’s also crucial to prioritize the efficient and timely settlement of any outstanding company payments.
6: Select a suitable business loan
You may face significant obstacles when trying to purchase equipment or expand your company without the influx of funds provided by business loans. You can also use the loan proceeds to improve your cash flow, ensuring that you pay your employees and suppliers on time. Business loans help you in growing your business or sustaining it during difficult times.As a result, choosing the appropriate business loan lenders is vital in this situation.
If you are seeking an SME or MSME loan, NeoGrowth is offering loans up to 20 Lakhs. Apply for a Collateral free business loan and get superfast loan disbursal. Zero paperwork is required, and daily repayment starts from Rs. 250 only. For more details call us at 9820655655 or 18004195565.
7: Automate your bill payments
It’s practically hard for any business owner to keep track of bills’ due dates. Furthermore, manually processing payments take a lot of time and divert your attention and energy away from your core business operations.
As a result, automating bill payments and taking a hands-off approach is the only way to go. Use online banking to automate all your payments and ensure that your accounts have enough funds to cover your expenses, whether it’s your credit card payment or utility bills. This procedure will save you time and energy while also avoiding late payment penalties.
8: Increasing Market Awareness
Reading business and economic news will help you remain updated on market and consumer trends. Knowing what’s going on in the market allows you to diversify or protect your investments quickly and effectively.
When it comes to running a business, there are a variety of factors that can influence its success; it’s no longer only the country in which the company is based. It has been observed that when something happens anywhere in the world, particularly in some of the world’s most powerful developed and developing countries, business gets affected.
9: Protect your business against fraud
Every firm must pay special attention to cyber security when utilizing technology, e-commerce platforms, and electronic payments. To guarantee that your data and your client’s data are safe, you should make it a point to update your anti-virus software and firewall on a regular basis.
10: Go Paperless with your company
Nobody likes sorting through stacks of documents and balance sheets. With the spread of cloud-based business tools, going paperless is simple. Everything can be organized on digital platforms, and all your important documents and company data can be backed up.
You can streamline your business processes by using online accounting and invoicing systems. They also make it possible for you to keep accurate and efficient records, which will aid you in filing your taxes..
When you’re stuck, ask for assistance. To assist you on your journey, speak with accountants, bookkeepers, lawyers, tax professionals, and software vendors. Developing these habits will assist your company to achieve greater business success and meeting its financial goals.
