The health of business finances tells the true condition of a business.
It is utmost important that the actions are deliberate and focused.
1. Separate your personal funds from your business funds.
2. Have a business name.
3. Register your business with Corporate Affairs Commission (CAC)
4. Open a bank account in the business name for ALL your business transactions.
5. Keep records of all business transactions viz details of all sales,purchases and all other expenses. Helps to monitor business performance.
6. Print sales invoices and issue invoice for all sales made.
7. Issue receipt for all monies( cash, cheque and transfers) received. 8.Collect and keep purchase invoice/receipt for all purchases and expenses paid.
8. Ensure all transactions pass through the bank account.
9. Encourage your customers to pay through the bank.Do less of cash transactions and more of transfers for payments. Helps your financial record keeping.
10. Create budget for the business. This is a financial action plan and review the budget regularly as part of annual planning cycle.
11. Benchmark business performance.
12. Need to understand and monitor the business “key drivers” viz sales, costs and working capital.
13. Have and document your strategic business plan and growth strategy.
