What is financial management? Contrary to popular belief, managing your money is not just about creating a budget. Although budgeting does play a significant role in financial management, there are still other key factors to consider. Financial expert Rani Tarek Jarkas might be able to help you find them.
Here are some essential strategies for effective money management, according to Rani Tarek Jarkas:
- Create a separate business account
A heavily detailed budget is useless if your personal and business funds are located in a single account. This only makes your financial management strategy less efficient, possibly resulting in overspending and missed growth opportunities.
It’s best to open a business bank account as soon as you start your business. But if that opportunity has long passed, you can start now to track profitability and monitor spending easily.
- Focus on cutting costs
Before you begin looking for strategies to increase your profits, you must first check if there is any way to reduce your expenses. For instance, you can cut costs by purchasing cheaper supplies, subcontracting certain tasks, and opting for social media marketing over traditional marketing.
Moreover, avoid taking on unnecessary debt, especially if you are planning to expand in the future.
- Take note of your deadlines.
Deadlines are everywhere in the business world. From your yearly taxes to your rental fees and credit card bills, keeping track of all these payments can be a pain.
Nevertheless, it’s essential to stay on top of your payment deadlines to avoid incurring additional costs, such as late payment fees and increased interest rates. Most importantly, paying your bills on time will prevent your lender and vendor relationships from going sour.
Fortunately, you don’t need to track everything manually these days. Setting automatic reminders on your phone or business calendar is as simple as clicking a few buttons.
Work with Rani Tarek Jarkas and grow your business with effective financial management strategies.