A Guide on How to Improve Your Small Business Financial Health

1. A GUIDE ON HOW TO IMPROVE SMALL BUSINESSFINANCIAL HEALTH WWW.ONLINECHECK.COM

2. ITS NOT JUST ABOUT SALES The financial health of a small business is more than just about making sales. There are other strong aspects and challenges of a successful business like proper management of cash flow and keeping your business on solid financial footing. WWW.ONLINECHECK.COM

3. WHY BUSINESSES FAILS 50% Unluckily, almost 50% of all small businessesfail within their first few years of operations because they were unable to manage their financial health. WWW.ONLINECHECK.COM

4. FINANCE MANAGEMENT MONITOR And when it comes to manage your business’s finances, it’s time to monitor and manage your financial health. MANAGE WWW.ONLINECHECK.COM

5. WHAT TO MANAGE? Cushion in your bank account Keeping proper accounts Staying familiar with your payables and receivables All these activities help in sound management of your business financial health. WWW.ONLINECHECK.COM

6. UNDERSTANDING KEY METRICS A sound management of financial health doesn’t mean a business owner have to be an accountant, instead the success starts with understanding few key metrics that constitutes the overall financial health of your small business.  THESE METRICS WILL HELP YOU UNDERSTAND YOUR BUSINESS FINANCIAL HEALTH BETTER AND IF YOU UNABLE TO UNDERSTAND THEM, SPEAK TO YOUR ACCOUNTANT OR OTHER TRUSTED FINANCIAL ADVISER. WWW.ONLINECHECK.COM

7. KEY METRICS BUSINESS CASH FLOW BUSINESS EXPENSES BUSINESS REVENUE There’s an old saying that “cash is king” and this means cash flow is the blood that keeps the heart of the your business kingdom pumping. Cash flow is the third most critical component of success for your small business. Without it, profits are meaningless and achieving a positive cash flow does not come by chance. The second important metric is the cost of running and managing your small business. It involves the cost of goods sold as well as the overhead costs related with your business. These costs include utilities bills, wage, subscriptions, insurances, equipment and supplies, rent, lease, electricity etc. Revenue is the chief metric that needs your full attention because a business without it just won’t last long. You need to monitor the daily income along with keeping track it on weekly, monthly, quarterly, and annually. WWW.ONLINECHECK.COM

8. KEY METRICS ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE Being an essential element of a business’s cash flow, accounts receivables also effect several areas of accounting including accounts payable, financial statements, budgeting and collections. Understanding the impact can aid in the direction on making decisions on your credit and collections policies. The habit of collecting late invoices from customers will become more challenging and difficult as the time passes. Accounts payable are your company’s unpaid bills and can have a big impact on the profitability. Staying on top of your Accounts Payable is important since they provide an opportunity to benefit from the quick payment terms since many suppliers offer discount benefits to customers who pay their invoices quickly. WWW.ONLINECHECK.COM

9. USE ACCOUNTANT TO IMPROVE FINANCIAL HEALTH Leverage your accountant perspective and insights can help improve your business financial health. The accountant reviews your business from a little different perspective, and leveraging it can help increase your profit potential. Consider regular meetings with your accountant to review your financial report and look for areas that need improvements or tweaking and use that information to leverage opportunities to save money or increase profit potential. You don’t have to be an accountant to run a successful business, but most successful entrepreneurs understands their financial data and they use that information to make informed business decisions. WWW.ONLINECHECK.COM

10. AUTOMATE ACCOUNTING PROCESSES Automating your accounting processes will not help make accounting and bookkeeping much simpler, but also enable your accountant to access your financial data remotely and easier to file tax returns, and year-end financial statements. WWW.ONLINECHECK.COM

11. 5 KEY QUESTIONS TO CHECK YOUR FINANCIAL HEALTH Before you start evaluating your business financial health, there are few key questions you should ask to determine whether your business is in sound financial health. Is your business steadily generating net profit? Can your business ensure unanticipated dips and change? Is your business meeting financial obligations? How does your small business measure success? Could your small business fund growth using debt financing and cash from earnings? WWW.ONLINECHECK.COM

12. 10 FINANCIAL HEALTH STRATEGIES FOR BUSINESS OWNERS Here are ten financial health strategies you can deploy to improve your small business finances. Know your numbers. Pay your bills on time. Fulfill your financial obligations properly. Keep separate accounts for business and personal. Track expenses in real-time. Improve your business credit. Lower your cost of operations. Support staff by focusing on their well-being. Create a business emergency fund. Last but not the least; take care of yourself. WWW.ONLINECHECK.COM

13. IS YOUR SMALL BUSINESS IN GOOD FINANCIAL HEALTH? Running and managing a successful business isn’t really a rocket science, it only require determination and regimen as an entrepreneur to figure out what’s happening in your small business financials. You might need some time and effort to learn a few additional skills, but these tips will surely a great start to have a better understanding of how your business is doing financially. Buy WWW.ONLINECHECK.COM