Every entrepreneur wants to build a profitable empire that has a long, healthy lifespan. Yet, poor financial management can impact your company’s growth and survival.

For your business to thrive over the years, you must maintain firm control of your financial resources. It will improve the brand’s financial stability, ability to fulfil stakeholder commitments, and potential to become an industry leader.

If you have recently launched a new company, or your organisation’s cash flow is spiralling, you must gain tight control of the money. Start now by learning about the four essentials to good business finances.

  1. A Comprehensive Accountancy Service

Hiring an accountancy service doesn’t mean relinquishing control of your company’s finances. If anything, the team of financial experts will improve your financial management, as they can handle every aspect of your company’s complex finances with ease, from bookkeeping and VAT returns to payroll and tax. For instance, Omer & Company will stay on top of your accounts to take some of the pressure off your shoulders. They can then help you meet your financial requirements and provide updates and reports to help streamline your operations.

  1. A Financial Contingency Plan

The path to success isn’t always easy. During your company’s lifespan, it might struggle with financial issues that may derail operations and growth. Despite attempting to grow the profit margin, cash flow could be impacted by clients failing to pay on schedule, costs exceeding forecasts, plummeting sales, or missed business opportunities, to name a few possible issues.

A financial contingency plan will help your company bounce back from money problems, which could ensure its growth and longevity. To develop an effective financial contingency plan, you must:

  • Pinpoint where you could receive bridging finance and the available terms
  • Consider what you will need to finance to help your company recover from hardship
  • Identify a potential exit strategy to protect your personal finances
  1. Financial Data Analysis

Despite feeling passionate about an industry, you must remember you’re running a company to generate a significant return on your investment. To ensure your business remains financially viable, you must routinely analyse your financial data.

For instance, you should:

  • Determine critical business KPIs
  • Analyse performance against past periods
  • Benchmark company against rivals

Analysing your financial data could help you identify critical money issues that may impact your company’s cash flow, operations, and lifespan.

  1. Invoicing Efficiency

Poor invoice management can impact your company’s cash flow. Secure payments as soon as possible by improving invoice efficiency. Start by requesting clients pay an invoice within seven days, which will minimise forgotten or lost payments.

Also, immediately send invoices to encourage customers to pay for the goods and services right away, and set up invoice reminder templates for email and SMS to prevent delays. Introducing late fees may encourage clients to pay on schedule, too, and the additional charges could improve your company’s financial security.

Don’t lose control of your company’s finances. Introduce the above essentials to enjoy healthy business finances throughout the decades.

By Lisa Baker, Senior Editor

Senior Editor Lisa Baker is the owner of Need to See it Publishing Group, providing contract news for business and news sites across the UK. Lisa is an experienced HR writer and commentator, editing HR publications for more than 5 years.