Importance of A Financial Department

Running a business is tough. You are the main, if not only, person trying to run it all. From building the business up from your idea, putting in the work to get it running, promoting, maintaining, etc, there is a lot that you have to take care of in order to keep your business running. It’s worth it because you are your own boss and you control everything, including finances. But are your finances truly being monitored?

What Areas of my Finances Need Managing?

Even though we may wish to make enough money where we wouldn’t have to stress financial management, even the top earners are having their finances managed. There are a few components you need to keep in mind when it comes to controlling your finances.

1. Bookkeeping- This keeps track of all the day to day activities within your business. You look over the “books” to how your spending goes and if there needs to be changes.
2. Credit- Not everyone may fall into this category, but if you took out a loan, line of credit, and/or credit card, you have to manage this area. You want to make sure you chose the right rate, especially during slower periods.
3. Cash Flow- Identical to bookkeeping, you watch this area to make sure you have enough to make the payments needed to make your business thrive.
4. Budget- One of the most important tasks you can do for your business. This is where you plan for all expenses and any others that may pop up (Gartenstein, D, 2018).
5. Taxes- If you have a business that doesn’t have taxes taken out automatically, make sure you are putting aside a percentage each month to pay to the IRS.

How Can I Keep Track Of My Finances?

Luckily, there are many systems out there that help you keep track of your finances such as Quickbooks and Wave. While these systems are great, it is still a good practice to have a professional review your finances. A bookkeeper or Financial Manager is a great investment for your business. It’s good to have a second pair of eyes watching your finances.

When you decide to outsource the financial department of your business, make sure whoever you choose has experience with management and finances. In the end, you want to consistently make more money than what is going out. The only way to accomplish this is to have a strong financial department within your business.