Photo by Patrick Denker licensed by creative commons no changes were made

Top 5 ‘Must Haves’ Entrepreneurs Need To

Best Manage Their Company’s Finances

It’s more than cash flow.

Photo by Elvert Barnes licensed by creative commons no changes were made

There are plenty of challenges...

Photo by blah blah photos...blah blah blah licensed by creative commons no changes were made

Even more so if you don’t have financial

training

Photo by Mitch Barrie licensed by creative commons no changes were made

Here’s What You Need to Do

Learn basic accounting

Photo by cbertel licensed by creative commons no changes were made

Keep bookkeeping records early on

Master the “Gospel of Cash Flow”

Photo by Valerie Everett licensed by creative commons a filter in photoshop was applied

It starts with revenue

generation

Get paid early: Deposits, early payment discounts,

milestone payments...

Photo by Brad Clinesmith licensed by creative commons a filter in photoshop was applied

Defer payments till the last day of

terms

Photo by aaronisnotcool licensed by creative commons a filter in photoshop was applied

Key metrics

Photo by nosha licensed by creative commons a filter in photoshop was applied

Numbers that tell you you’re a-ok or

in trouble

Photo by Kevin Thai licensed by creative commons a filter in photoshop was applied

Two metrics you should track regardless

Photo by David Holt licensed by creative commons a filter in photoshop was applied

#1 must watch metric: Net forecasted cash

flow

Photo by William Murphy licensed by creative commons a filter in photoshop was applied

“The difference between cash in and cash out”

#2 must watch metric: 30 days sales forecast &

backlog

Photo by Valerie Everett licensed by creative commons a filter in photoshop was applied

Key metric example: Manufacturing

company

“Cost of Goods Sold (COGS)”

Key metric example: Distribution company

Photo by steve gibson licensed by creative commons a filter in photoshop was applied

“Shipping costs”

Costs impact other costs or revenue

Photo by Nahid V licensed by creative commons a filter in photoshop was applied

Think through any decision to cut costs

or spend money

“Spending $1K on a new computer makes your employee more

productive”“Versus spending 1K on a new conference table to impress customers”

Prove that you can manage capital

Photo by epSos .de licensed by creative commons a filter in photoshop was applied

Before asking for someone else’s

Photo by Pixabay.com

Go to my blog for more advice