Finances in Business? What are they and why is it important?
Finances. As most of us know in our daily lives we go over our finances all the time especially when we have bills to pay. We use finances to go over our bills to see how much were spending, how much were making, and to budget out where we can save. To be honest now most banks offer help to help you manage your finances so you can keep track of your spending, which is very important if you want to stay in control of your money.
Well, the same goes for business and it is even more important the bigger the business. You have to always be in control of your money and always find ways to save. The more you save the better you can never go wrong with saving and the way to do that doesn’t always have to be with cutting labor. That is a last resort if your business is failing and you need to lay off employees to save the business. But with you need to try to on your controllable’s.
Your controllable’s include lets say for example, it may be tools, supplies, vendors, food products, brands, etc. Lets say with supplies you may be getting your art supplies from one company that is charging you twice as much as another company that may offer a discount for getting a bulk of those supplies. If its transportation maybe you can consider controlling operating expenses. There are always ways to cut back and save and in a lot of cases doing inventory on a monthly basis can help you to see where your at. Remember that knowing your finances are very important and is very effective to a business.
Planning and ahead and always saving is the best way to go. You never know what may happen so having money set to the side in case of emergency is the way to go. Have yourself a check list, binder, receipts, bills, etc. to stay on track of your finances. Even if you ask your bank to help organize your finances so you remain ahead of the profit you make as a business.
I will be making more post on tips for running a business and I will be creating a page soon under the artist tips page for those looking for advice to run a cost efficient business. Thanks for reading and I hope this helps. Stay Tuned.