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Do you already understand how to Choice Health Finance strategy for a company? If not, don’t leave this article unfinished. And for you, don’t do business if you don’t think about profit in your head.
Whatever the size of your business or the industry you choose, you must have a plan in place and project your business profits. Obviously, if you do business with coworkers, you need to figure out how to work together, how to calculate capital turnover and costs, and a number of basic obligations that must be met during the business run.
How to Choice Health Finance Strategy for Businesses
This is where, in addition to being aware of opportunities, you must also have a strategy, especially when managing the company’s health care finances. Not all new business owners keep records, and when they don’t, the company ends up in a bad spot because its capital doesn’t move around as it should and its income doesn’t match what was expected.
The strategy of managing the company’s finances is very important to master and execute to avoid losses and bankruptcy. You are actually the financial manager yourself before you hire a team and look for a professional financial manager. Here we provide five strategies for managing healthy company finances.
1. Make financial statements.
Many businesses believe that if they have made a large profit, they are in good health. Not necessarily! We cannot judge the company’s health solely on the basis of profit but must consider a variety of factors. The principle is that a healthy company can generate more profits than expenses.
This is where you have to make financial reports in a neat record so that it is easy to browse posts that waste expenses. In addition to being used as a basis for measuring the company’s financial health, you can also use financial statements as a basis for consideration when you want to make company financial decisions.
2. Determine the financial portion.
the portion of funds collected, such as the division of total income into various posts, such as salary payments, debt payments, operational costs, and so on. So the first thing you have to do in determining the financial portion is to determine how much of it you use for your company’s various needs.
The determination of this portion of finance must be agreed upon at the beginning so that later it can run in a structured manner. You can take this example, for example, and apply the financial portion pattern with the number 30:30:30. The point of this figure is that you use 30% of it on operational costs for the next month, such as electricity, building rent, and so on.
30% you use to pay employees, and the remaining 30% you can use for company construction. By determining the portion of finance, you can manage the company’s finances neatly.
3. Create neat bookkeeping.
This strategy of managing the company’s finances is familiar to large-scale companies. Why is that? Because the finances of a large company are certainly processed by professionals in their fields, It is very rare for a small-scale company to use this strategy.
In fact, keeping books organized is no less important than the strategy for managing other company finances. With bookkeeping, you can record all transactions in the form of income and expenses. This is done so that you can more easily monitor the financial situation of your company.
4. Reduce risk
Risk means spending that you should avoid as best you can. It is true that risks can come at any time, so you must manage the company’s finances professionally.
- One of the things you can do to reduce your risk is to reduce the amount of debt you borrow from a money lending institution or others, because there is an interest expense that you have to pay every month. Of course, this interest expense is a serious one that you must bear.
- If you need capital for the operation of the company, it is better to offer a mutually beneficial mechanism of business cooperation and also pay attention to the duration of cooperation. Not a few novice business actors often choose capital shortcuts with high-interest loan services. As a result, in the course of the business, profit cannot rotate business operations.
- Always reserve cash in a bank account; do not fully allocate cash for capital.
- Bill on a regular basis to reduce late payments.
- Send reminder emails or short messages if there are any account bills that are about to be or are past due.
- Give appreciation in the form of price cuts or discounts if customers can pay faster.
- If you plan to do business development, you must negotiate investments so that they can be carried out at the right time. Do not let cash flow be drained due to the calculation of business barriers that are not mature.
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5. Control cash flow
Controlling the flow of cash is an important financial management strategy that should not be overlooked. Especially if your company is large, controlling cash flow must be prioritize.
There are many inexperience business actors who believe the same thing about money and profit. Profit is a number that appears in your financial statements at the end of the year. Cash is the money you currently have. The funds that are in your cash account determine whether you can.
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Those are the five strategies for managing company finances and Choice Health Finance that you should implement. The most important thing about the strategy is discipline and consistency in the application of financial management.