Making my money work efficiently

Knowing how to optimize your business finances is critical to healthy and successful company growth. We’re here to help you plan, track, automate and optimize your cash flows so that your money is efficiently working for you and your business.

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How should I be planning and tracking my finances?

To track your cash flow, create a balance sheet itemizing all sources of business income in one column and all expenditures (including both fixed-overhead costs, like equipment, and variable costs, like product inputs) in the other column. Include both current and expected sources of income and expenditure on these lists.

Use your balance sheet to create reliable financial projections. Ideally, your balance sheet should give you a reliable cash flow forecast for the next six to twelve months. This will allow you to determine how much cash on hand is required at any time. Make sure that you can always access enough operating capital to cover your expenditures and maturing debts.

How can I make tracking my cash flow easier?

Once you have a good sense of your cash flow, by creating a balance sheet, consider automating your billing process and setting up electronic payments. This will help you ensure that your money is flowing seamlessly at the times you expect.

Your profits, too, can automatically work for you if you set up  “sweep” payments, which automatically move a predetermined amount of surplus cash from your business checking account into an interest-bearing account.

How should I be investing my profits?

Your business’s investment strategy will be unique to your own vision, goals and needs. However, there are many ways your profits could build your business’s productivity, efficiency and—hopefully—future profitability.

Investing in infrastructure and operations can bring valuable results—especially if your business is relatively new. You might consider investing in product research and development, for example, or technologies that can help streamline operations. You might also consider investing in more stores, production centers or products that you offer, so as to expand your current business efforts. Marketing may be a good place to invest to grow your customer base, along with building up your digital presence.

Another way to think about it is investing in your employees. This might involve the development of training programs, so that they are more effective on the job, or expanding your benefits package to keep them happy.

Whatever investment route you pursue, remember not to invest in just one aspect of your business. Instead, pursue a holistic investment strategy, as this will likely lead to stronger and more sustainable returns.

Important Disclosure Information

This content is general in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.