Financial Management of your Company. This is one of the main pillars for any type of business to succeed. Regardless of your size.
And believe me: when poorly done, financial management is one of the main responsible for the bankruptcy of many companies. So, understand now what is Business Administration , all its importance and the 08 main pillars to work this subject in the right way! Do you want to receive tips and information to set up your own business.
So subscribe to this channel and stay on top of everything you need to know to open your own company. To try to make this matter clear to you, we will address the following points: 1. WHAT IS FINANCIAL ADMINISTRATION?
2. ALL ITS IMPORTANCE 3. 08 PILLARS TO WORK IT RIGHT So, let's go!
1. WHAT IS FINANCIAL ADMINISTRATION? Basically, it's a set of administrative actions and procedures to manage your business money well (or personal life too).
Therefore, it is about planning, analyzing and controlling all the financial activities of a company. This way, you can maximize results and, consequently, profits. In the same way, many fronts to be considered are involved.
Like payments, sales receipts, taxes, records, whatever. In the end, always ensure that the business has enough money to maintain, invest and grow. 2.
ALL ITS IMPORTANCE The financial management of a company makes it possible to control and use resources in a responsible and coherent way. Literally all your assets. Thus, there will always be breathing space for the business to remain healthy and productive.
In the same way, it will be possible to reduce any waste that may occur. Whether in production, time, team, anyway. With this, costs will be controlled and will even decrease when financial management is well done.
All this without losing productivity and quality of work. In addition, the company will have a very solid structure. In the same way, you will be able to make your day-to-day and planning more assertive, coherent and viable.
In other words, your business will be robust to always be able to execute what is planned. As a result, your company will be able to achieve results every time. Still, with real and very positive profits.
Because always keep in mind: selling a lot does not necessarily mean that the company is profitable. Often, managers work the wrong way in the financial management of their company. And even though they sell a lot, they continue to make a loss.
And that's what we're going to explain later as well. 3. 08 PILLARS TO WORK IT THE RIGHT WAY 1.
PLANNING AND BUDGET The first step is to have adequate planning and budgets that are very well structured from the beginning. How to understand the current situation, identify potential problems, threats and opportunities. As well as defining where you want to go.
In other words, it is necessary to have information such as: - Well-defined goals and objectives. They will serve as direction for financial management to follow and pursue every day. Whether it's reducing costs, better controlling taxes, increasing overall profitability, in short.
- Strategies, which will establish the actions to be taken and worked on. Thus, achieving the objectives and goals outlined above. - Metrics.
Which will serve as performance indicators for financial management. And so, managers will understand if it will be necessary to make possible adjustments. Or else that everything is working as planned.
In the end, well thought out planning and budgeting will increase your overall control of your company's finances. Avoiding waste, eliminating unnecessary costs and expenses and structuring the business whenever possible. Also, we recommend that you always work more than one scenario.
For example: an optimist, a neutral and a pessimist. In this way, it is possible to prepare even more for possible situations that they may face during the journey. 2.
RIGHT TOOLS In addition, there are several tools that need to be worked on to have good financial management. However, some we even consider mandatory, such as: CASH FLOW In short, it serves as a financial management instrument that projects all the inflows and outflows of the company's financial resources for future periods. It is the control of accounts payable and receivable.
With this, it indicates what the cash balance will be for the projected period. In Finance, cash flow refers to the cash flow in the company's cash. That is, the amount of cash received and spent by a company during a defined period of time.
In addition, it will show the control of the company's operational cycle activities. In other words, they are all the activities of buying and selling goods and services of the business in the short term and their respective payments and receipts. In this way, you will have more effective control and management .
Based on numbers that will help you make decisions in the present period, but also for the future. So, if you want to delve deeper into Cash Flow , which we highly recommend, watch our practical video. To do this, just click on this button above or on the link we leave in the description.
WORKING CAPITAL In short, it is the company's current assets to bear fixed and variable costs and expenses. That is, they are the resources that the company has to bear its expenses and costs. Regardless of whether it is generating profit or receiving funds from other sources.
It is the money that will ensure that the company continues to survive and function while the investments have not yet generated a return. In other words, survive until the money enters the company's account. Working capital represents how much the business can make available to pay and settle its obligations and bills.
Consequently, this means that working capital is directly linked to the financial health of the company. And that is why it is of utmost importance to the success of your own business. And we also have a really cool video about Working Capital.
If you want to know more about this subject, just click on this button above or on the link we leave in the description. 3. RIGHT PRICING Pricing is something that many businesses do wrong.
Setting the correct price for your company's products/services is what will ensure real profitability. As we said before, there's no point in selling a lot if the price worked out is wrong. Thus, the company will not make a profit in this way.
And many points are taken into account here. As margin, costs and expenses involved, taxes, competition and current market, in short. We can even consider here possible discounts or offers that the company wants to offer to its customers.
For customers, discounts and offers are always great attractions. But it is necessary to assess, in fact, whether these actions will be profitable for the business. That's why we recommend watching our How to Price Your Products or Services playlist.
If you want to watch it, just click on this button above or on the link we leave in the description. 4. PAYMENT METHODS Another point that needs to be considered is how your company will receive payments from your customers.
Understanding this subject seems simple, but there are some gotchas that we need to be careful about. For example: accepting payments by debit, credit or even pix is super valid. However, it is necessary to pay close attention to the fees that the flags and banks usually charge.
The same goes for transfers, tickets, food or meal vouchers, in short. Likewise, understanding the deadlines for the money from payments to fall into your company's account is essential. Many businesses offer installment payments.
Therefore, it is also important to understand when this money will actually be available for your company. 5. COMPENSATION Working well with your team's payroll is extremely important as well.
Deeply understand how much each employee is earning and assess whether it is fair or not. That is, whether your team members are getting what they deserve. Or if they are not performing well.
Or even if they are earning less than they deserve. Likewise, this applies to the remuneration of the company's partners as well. Here, it is one of the critical points because many entrepreneurs end up taking more money from the company than they could.
Consequently, the financial health of the business is greatly impaired. Therefore, at this moment it is necessary to have a lot of coherence, sincerity and responsibility. Never withdraw more money than is really consistent and fair.
And a subject that can help a lot to work assertively on the remuneration of partners is Pró-labore. Which, in short, is the remuneration of the partners who work in the company. Therefore, we recommend that you understand this subject well.
Which in many cases is overlooked by managers. And this is something very dangerous indeed. If you prefer, we have a video that explains the pro-labore well.
If you want to watch, just click on this button up here or on the link we leave in the description. 6. TAXES AND TAXES Still, many companies fail to calculate and plan the taxes and duties that need to be considered and paid.
And you have to be very careful with them. Choosing your company's tax profile is very important. Otherwise, if you choose the wrong profile, your business will pay more tax than it should.
Likewise, working and planning taxes well, your company will always be aware of what needs to be paid in a very detailed way. So here it is interesting to have help from experts. Like an accountant or accounting firm.
7. COSTS AND EXPENSES Added to all this, have all the costs and expenses of your business at the tip of the pencil. All the same.
In this way, you will understand, in fact, what your company is spending. As well as identifying what can be cut. But always considering not to lose the quality of your business delivery.
And understanding the difference between cost and expense is very important. So, if you want to know how to do this, watch our video on this topic. To do this, just click on this button above or on the link we leave in the description.
8. INVESTMENTS Finally, for a company to grow, it is necessary to invest. Whether in people, equipment, structure, opportunities, in short.
However, before investing, study well how much it is possible to invest at the moment. If you don't have the cash for that, after all we've talked about here, no problem. It is possible to plan this investment for a more opportune time.
Or find other viable alternatives. Many businesses are looking for loans and financing. If you choose to go this route, be very careful.
And study, in fact, if your company will be able to honor its commitments without harming its financial health, okay? Did you see how having good financial management is a very important pillar to succeed? Not only in the future but in the present.
In this way, your business will be able to develop in a healthy and constant way. Thus, becoming very competitive in the market. And attractive to your customers every day.
So, if you want tips on how to have a great Business Financial Management, watch our other video that shows this in a very practical way. To do this, just click on this button above or on the link we leave in the description. And just to recap what we talked about here: 1.
WHAT IS FINANCIAL ADMINISTRATION? 2. ALL ITS IMPORTANCE 3.
08 PILLARS TO WORK IT THE RIGHT WAY We hope you enjoyed it! And if you want to know more about how to set up and manage your own business, visit our Youtube channel, we have several videos on this subject, ok? And if you liked it, share this video with your friends and family to help them too!
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