Financial management is key to the success of any company since the correct administration of resources depends on it to ensure that income will be sufficient to cover expenses. Therefore, that the activity will be profitable.

However, it is not always easy for small entrepreneurs to manage finances, and it is very common to hire external professionals for accounting management. In any case, it is essential not to lose sight of the need to plan and carry out exhaustive monitoring of the cash flow, cost structure, and liquidity of the business.

We know that managing finances is essential for the long-term survival of the business and that only entrepreneurs who control the economic situation of the company can make the appropriate strategic decisions. That is why we share the following basic tips for good 理財新手.

Be aware of financing options:

External financing is essential for the start-up and growth of any company, but it is advisable to keep a balance between indebtedness and the ability of the business to generate profits that comfortably cover interest payments. In addition, it is vital to be up to date with the different financing options, which go far beyond banking. Only then can the ideal channels be sought to obtain credit at the lowest price.

Establish a flexible cost structure:

Adjusting costs to the real needs of the business is essential to avoid unnecessary outlays, in addition to increasing the ability to save. Of course, to evaluate existing costs and introduce improvements, you have to keep the accounting up to date and thoroughly know both the company's reality and the market situation.

Likewise, variable costs should be prioritized over fixed costs, since the latter can go against the viability of the company if it goes through a pothole and decreases its activity since the price to pay will be the same regardless of economic results.

Control collection and payment deadlines:

As far as possible, try to adjust collection and payment times, limiting customer payments in the long term, incentivizing collection in advance, and convincing providers to delay their collections until they are available. sufficient liquidity.

It is clear that late payment is a very common problem and, precisely for this reason, it is important to be active when collecting invoices. Having a calendar in which to mark the collection and payment days will help to maintain the balance between income and expenses, and not to get confused when claiming overdue invoices.

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