Top Ten Checklist to Keeping your Business Finances in Good Shape

The following is a ten point checklist for the effective management of business finances:

Know your break-even point

1. It is crucially important that you know at what point your business starts to make a profit. Do you know how to calculate the break-even point for your business?

Control your finances

2. Make sure you have key systems in place to help you manage your finances effectively. Start by implementing a system to forecast your sales.

3. With cash flow remaining crucial in difficult economic times, you need to know where your cash is tied up - stock, creditors or debtors.

4. A structured budget is essential to help you control costs and manage your spend.

Managing cash flow

5. Can you account for every penny of your income and expenditure? Make sure you control the cash of your business.

6. Effective debt collection is one of the best ways to ease cash-flow issues. Are you collecting your debts promptly?

7. Banks are not your only access to finance. Consider alternative options to get the extra funding you need.

Managing customers

8. Once you are effectively controlling costs, increased sales to both new and existing customers can increase profitability. Be wary of stretching your credit offering.

9. The danger in difficult times is to cut prices and offer discounts. You need to ensure that your prices are sustainable in the long term.

Managing your marketing activity

10. Effective marketing is crucial to promoting your business and raising awareness of your products and services. You should review the effectiveness of your marketing and selling activities.