Running a successful business requires an eye for detail and attention to the numbers. Whether you’re just starting out or you have been running your business for some time, here are five essential finance tips to help ensure your company’s fiscal health.<\/p>\n\n\n\n
Expect a Lag in Cash Flow<\/strong><\/p>\n\n\n\n When you are starting out in business \u2014 or when your business is expanding \u2014 expect income to lag behind expenses, notes Gary W. Patterson, the FiscalDoctor\u00ae and enterprise risk management expert based in Alpharetta, Georgia. \u201cBe sure you can live with the one-month rule,” he advises. “Your full monthly increase in costs will go at least one month longer than you think, and revenue will start at least one month later than you think.\u201d<\/p>\n\n\n\n Keep Your Budget Accurate<\/strong><\/p>\n\n\n\n A strong business requires an equally strong budget. Using the Quicken mobile app<\/a> on your smartphone, together with Quicken Home and Business<\/a> software, you can record and track expenses from wherever you are. Recurring income like monthly service contracts, as well as fixed expenses like your lease and insurance payments, can automatically be added to your budget each month. <\/p>\n\n\n\n Learn to Forecast <\/strong><\/p>\n\n\n\n While historical data is vital for keeping your budget on a firm foundation, it\u2019s not going to tell the whole story for this month or the months to come, especially if your business is growing. Forecast future sales and expenses based on realistic, but conservative, estimates. “The flow of cash in a business is the hardest for a good craftsman or artisan to learn, and they have to learn quickly,” says Ken Yager, president of Chicago-based Newpoint Advisors Corporation. “The only way to truly ever get a grip on it is to know your liquidity and to see that you have a way to plan your cash flow forecast, not just look at historical financial statements.”<\/p>\n\n\n\n