10 Tips on Improving Your Financial Management - PTP

1. 10 Tips on Improving Your Financial Management - PTP Financial management provides the foundation for business growth and healthy finances going forward - these are our top tips on how to improve this for your organisation. ● Make sure you know where you’re going. A clear business plan is a vital part of financial management, as it lays out where the company is heading in the coming years, including financial projections. ● How much do you have in the bank? You should have financial information about the business at your fingertips - how much cash is available right now? What are your borrowing rates? Constant financial monitoring is key to positive management. ● What’s the minimum your business needs every day? Tracking your outgoings and liabilities is as vital as knowing what’s in the bank. You should be clear on what your business requires to tick over on a day-to-day basis so that you never go below this. Rent and wages will be a big part of this figure. ● Reduce the opportunities for late payments. Customers who pay late have an impact on cash flow and this can be really challenging. So, make sure you’ve reduced the potential for late payments as much as possible, from being clear about late payment penalties, to timely invoicing and using an automated system that will chase for payment as required. ● Invest in your accounting records. Whether you do this yourself or employ someone it’s crucial to have clear and accurate accounting records so that you’re not existing in a state of chaos that can enable late payments etc. Sound record keeping will ensure that you know who has paid you, as well as what payments you need to make for the business to suppliers, creditors etc.

2. ● Pick your funding sources carefully. Some enterprises are ideally suited to borrowing while others will benefit more from investment. ● Make tax deadlines a priority. When you start getting behind with tax payments it can be difficult to reverse the situation. So, make it a priority to complete your filings and payments on time so that the business is always up to date and not vulnerable to penalties and fines. ● Focus on efficiency. Every enterprise can do more to be more efficient and this has positive benefits financially, as well as when it comes to sustainability. Could you replace equipment with more sustainable items, reduce overheads by implementing behaviour changes or go paperless? ● Stay on top of your stock. If your business is dependent on stock then this is going to be crucial because too much, or too little, stock can be very damaging and costly. Implement systems that will enable you to keep control of your stock levels so that you’re not likely to run out but also not tying up capital unnecessarily. ● Don’t put anything off. It always pays to tackle problems straight away in business. If you start putting things off for another day, and that day never comes, small issues can really escalate. When it comes to sound financial management, these are some of the key steps to take. Find out more by booking onto our Sustaining Effective Financial Control training course. Please financial-management/ visit: https://www.ptp.co.uk/press/2022/12/10-tips-on-improving-your-