6 Tips for Keeping Corporate Finances in Order

Keeping corporate finances in order is critical to the sustainability of your business. Check out 6 tips for managing company resources well!

Keeping corporate finances in order is essential for the longevity of the business. This practice allows not only good profitability, but also removes unnecessary expenses and contributes to the company’s growth.

Therefore, it is necessary to know techniques capable of keeping the operation adequate to the financial plan. These measures work for small businesses as well as large corporations, even if the scale is different.

Do you need to organize your business’s corporate finances? Keep reading and learn about 6 key tips for good management of your resources!

1. Separate individuals and legal entities

It is very common for business owners, especially small ones, not to separate their personal and professional financial lives. This oversight generates inconsistencies in the individual’s resources, as well as in business finances.

The first step to being able to deal with this issue is to have accounts that are split, that do not have any intersections. This division can be easily done through digital banks with services aimed at legal entities and which, depending on the plan, do not charge fees.

Establishing individual control of these accounts helps avoid financial problems for you and your business. Have lists of objectives, costs, receipts and other variables for both your CPF and CNPJ, keep records and monitor progress, in order to avoid headaches generated by lack of control.

2. Create a strategic plan

Keeping track of individual accounts, the next step is to draw up a business plan. This is the document that will guide your company towards the objectives and goals established in a predetermined period.

For this planning, it is not enough to define an ideal billing. It is necessary to foresee in its preparation which actions will be implemented and the resources necessary to achieve the desired results.

Indicate goals in the plan that are realistic, attributable to specific employees, based on achievable and measurable deadlines. The document will allow for clearer monitoring by everyone in the company, facilitating both rewards and possible charges to the team.

Keep in mind the company’s history, the country’s economic and even political scenario when defining a plan to avoid frustrations. Even sudden changes can happen, so have accessible and practicable contingency plans to avoid negative impacts on corporate finances .

3. Control inputs and outputs

Cash flow control goes beyond a simple spreadsheet with data on how much the company earned and spent in a month or semester, for example. It should be in line with the previous tip, considering long-term goals and characterizing each input and output individually.

You must segment accounts receivable with sales results, with returns on investments, assets and rights, and other sources of passive income. Costs, on the other hand, include salaries, rent, production inputs, marketing , working capital and other items.

A good strategy is to have cost centers for each area, in order to group sectors that need more money. In this way, the manager can easily see what his team’s biggest expenses are, and employees can provide ideas for reductions or alternatives to mitigate the problem.

4. Manage suppliers and deadlines

The production chain needs harmony in order to function well and towards the company’s objectives. This care requires close control of all deadlines for receipt and delivery of goods, combined with the monitoring of cash flow.

Having professionals on the purchasing team focused on ensuring this process is essential. Furthermore, the sector responsible for this monitoring must have a team trained to negotiate more interesting prices and conditions with suppliers.

In this sense, it is important to find a balance between these factors and the quality of the product or service delivered. Also ensure that defaults are controlled by professionals from the accounts receivable team.

Non-payment of business commitments can snowball if left unattended. Remember, however, to facilitate the means for discharges with technological solutions.

5. Use technological solutions

Time is priceless in the business world. After all, rework and corrections represent losses that companies cannot sustain. For this, technology solutions for corporations are pillars of good management.

There are softwares that allow automated control of cash flow, inventory, deadlines, taxes payable , default rates and much more. These programs facilitate strategic decision-making by ensuring reliable data, minimizing human errors.

Such solutions even allow remote management via mobile devices anywhere with internet access. Investing in technology means reducing the chances of losing business and better controlling corporate finances.

6. Promote inventory management

Inventory management allows the business to anticipate costs with new acquisitions. In addition, it allows purchases to be the result of taking advantage of opportunities, such as promotions offered by suppliers — a more recurrent situation when these partners are well managed.

Through inventory management, the company will be able to more accurately predict when it will need to restock. It will also be possible to identify which products have more or less demands and the storage capacity.

The data obtained help the logistics sector to optimize its processes and reduce the use of financial resources during operations. The resources of a management software, as you have seen, can contribute to real-time inventory control.

These systems allow for simultaneous updates of outputs and inputs through simple data recording. In this way, technology facilitates the management of this sector, helping to keep the company’s financial health in order.