Running a company is not easy, especially when it comes to managing expenses. There are many elements to consider during the process, so financial management is one of the most difficult areas, and even more so if you don't have enough knowledge.

There's one thing you need to know: your company's finances can determine its success and, as a result, it's essential that you use all the tools that you have at your disposal to do it in the best possible way.

In this article, I'm going to talk to you about tools and tips that you should put into practice if you want your business finances to be and remain healthy.

How to bring order to the finances of my business

The first step in getting your company's expenses under control is to think realistically, what is the current state of your business finances. It's no use deluding yourself if what you need is a remedy.

You can do this by answering questions such as:

• Do I record the finances of my business? In what way?
• Could they be played by someone other than myself?
• Do I have enough recorded data to allow me to draw conclusions?
• Do I do a monthly, quarterly or annual analysis of them?
• Do I rely on a financial tool to manage my expenses?

The more positive the answers to these questions, the healthier your business finances will be and, the more negative, the less.

How to organize the finances of my company or business

Once you realistically know the current state of your company's finances, it's time to remedy it, to a greater or lesser extent. There are a few steps you can take to organize your finances properly:

Plan your finances

Planning is critical when it comes to finances. It's very important to draw up and follow a plan.

The first thing you should do is create a budget, even if you have a small business, and consider that your expenses, debts and income are controllable.

What should such a plan contain? From the marketing strategy you are going to carry out and the investment that will be necessary, to the payment of the most basic expenses of your company, such as the supplies of the same.

I recommend that it be concise and realistic, and that you follow it faithfully. This is not to say that it is definitive. You'll need to review and modify it periodically, as your company's needs will change.

Use financial tools

This is one of the most efficient ways to manage your company's finances. There are a lot of tools, so it's important to analyse them and choose the one that best suits your needs.

The expense management tools that exist in the market are usually complementary, in other words, it is likely that one will not meet all the needs of your company, and it will be necessary to use several in parallel.

Separate your accounts

Something very important that you must do from the moment you decide to set up a business is separate your personal accounts from your business accounts. It doesn't matter if your company is small or at a low level of development, since every small financial movement could generate a lack of control at the end of the month.

Predict the future of your business

When you have a company, you can't live in the present. And you'll say “I can't control the future” and I'll tell you that it's totally true, but yes you can establish a possible future with the information you have in the present.

Project the different ways in which your company's accounting can advance. The further you can trace the path, the greater advantages you will have in the future.
I can tell you that many of the tools that exist are capable of offering you projections of your future financial movements.

Establish an emergency fund

As I said in the previous point, even if you plan for the future, there are many things that you cannot control and that can cause expenses that you do not expect, more or less high. As you won't know the exact amount, it's recommended always have an emergency fund, which you avoid touching except for emergencies (as the name suggests).

As part of your initial planning, include a percentage that you can completely forget about and go beyond. Establish a periodic shipment, in any amount you decide, so that this emergency fund will increase.

If you choose a quantity and set a periodic movement of it, you won't have to wonder every month if you can afford to do without that money.

How to keep track of business expenses

The real key to having your company's finances organized is to keep track of what you spend each month. If you're clear about it, you'll be surprised to learn that not everyone can brag about it.
In order to plan and move forward, it is important to know where you currently are and for this purpose. It is necessary to study carefully the expenses you make each month and, if possible, try to reduce them.