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How to Manage Small Business Trading Finance

Today, many people who start small businesses do not know the importance of managing finances in business. For example, how to manage a small trading business such as financial income and expenses from the business.

There are even those who mix business finances with personal finances which in the future can make business finances difficult to develop.

Before that, you must know how to strategy in managing business finances so that your business can be well maintained and can develop even better.

Therefore, you can follow the steps on how to manage finances for your small business, as follows.

1. Make a Plan

The first step you take is to create a general plan. There you can plan a long term program that will run your business for a long period of time.

In one period you can divide it into shorter periods like weeks or months.

From there you can calculate the costs you will incur.

Not only a general plan, you must also create an income plan. From revenue planning you can estimate the amount of costs incurred to meet the needs that have been planned in advance.

For example, capital costs for business development, products sold, product sales targets, marketing strategies, finance for cash reserves, to calculate whether each sale generates a profit.

And usually the percentage of each entrepreneur is different, for sure this plan helps you manage your finances according to a predetermined amount before starting a business.

2. Make a Routine Budget

After doing general planning and income, then you make a budget because budgeting can help you limit the expenses that have been spent with previous estimates.

Tips on how to manage a small trading business in preparing a budget, you have to do it regularly by conditioning from the previous period and you can develop a budgeting strategy for the next period from previous references or reviews.

Avoid using the budget for things that are not too important and not according to the previous plan.

3, Make Financial Bookkeeping

By doing financial bookkeeping, you will know every transaction your business makes. There are many ways you can do to make financial books, either manually or using accounting software because it makes it easier for you of course.

The purpose of financial bookkeeping is to make it easier for you to analyze business profits and losses, can be a reference for developing future business strategies, and much more.

From these financial records you can see and understand the performance of your business. One application that you can use is Jubelio with software that automatically records income, sales, and even goods returns transactions that are also recorded and integrated with the marketplace. So, you don't need to do the recording manually.

As an entrepreneur, you should start learning to make financial books properly and correctly because if your business gets bigger, it can also be useful how to make financial books.

4. Cash Flow Control

As it is known that cash flow has an important influence in a business because with a cash flow statement you can find out whether your business is experiencing a profit or loss.

Therefore, we must check the cash flow periodically with high accuracy. If you have trouble monitoring cash flow, you can use an administrator to control it with good financial procedures.

Because if your cash flow is smooth, it means that all the obligations you have to pay are fulfilled properly, then your business activities can run smoothly and your business will continue to grow.

5. Do Supervision

After planning a budget to control the cash flow of the business, your final step is to keep an eye on the finances of the business. You can use the money from your business profits to grow your business bigger. For example, by investing in merchandise that will be sold so that it can generate profits.

In addition, you should do regular monitoring. Because by supervising you can be more responsive if there are problems related to your business finances and can be repaired immediately so as not to interfere with the company's operational activities.

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