No matter what stage you’re at with your business, whether you’re an ambitious entrepreneur with grand plans for a startup or an old hand, it’s essential to understand the relationship between business and finance. If you can’t generate profits year in, year out, you’re not going to make it to the top, and there’s every chance that your venture will fail. You may not have aspirations to make it onto the rich lists, but every business owner wants to reap the financial rewards of their hard work. If you’re keen to make your financial affairs less taxing, this guide should prove useful.
Be proactive from the outset
One of the most common problems business owners experience, especially in the early days, is finding that they’re behind with the accounts. When you’re trying to juggle multiple jobs and responsibilities, it can be difficult to stay ahead of the game, but don’t procrastinate and drop behind. If your books aren’t up to date, you won’t have an accurate picture of what’s going on in those all-important accounts, and this could increase the risk of cash flow problems. Make sure you’re on the ball from the outset and be proactive when it comes to accounting. Lay out a clear, organized strategy and if you employ others, make sure they are fully aware of the processes in place to make and take payments. Accounting isn’t everyone’s idea of fun, but the longer you leave looking at the books, the more work you’ll have to do and the higher the risk of financial issues.
Make use of tools and software
These days, accounting isn’t all about sitting down surrounded by reams of paper and using a calculator to draw up budgets, track payments and get an accurate idea of expenditure, overheads, and profits. Today, business owners have access to a host of tools and software programs that make it much easier and faster to manage their finances. If you don’t already use online programs, read some reviews, and look for solutions and options that suit your business.
Seek expert help
There are certain tasks that you’ll be able to manage without expertise in accounting and a qualification in business law, but it’s worth enlisting the help of experts when it comes to more complex issues like dealing with tax matters. If you’re new to the world of business, you may need advice about completing your return. If you’ve already done your taxes, you may find yourself in a situation when there are question marks over your return. If this is the case, it’s a good idea to contact a law firm, find out more about attorney prices, and make sure you understand the situation and how to move in the right direction. It’s better to resolve any issues quickly than to let them fester.
Get a deeper insight into your cash flow
It’s common for new businesses to encounter cash flow issues and this is often due to the fact that there are seasonal differences to contend with. If you run a business that tends to perform better at specific times of the year, make sure you organize your finances in a way that enables you to stay afloat throughout the year. When you’re taking in more money, set a sum aside to give you a cushion in the months when trade is slow.
Be aware of deadlines and legal stipulations
As a business owner, you should be aware of deadlines and legal stipulations that affect your finances and the way you run your business. If you understand the ins and outs of claiming expenses, you’re operating legally, and you know exactly when you need to submit your accounts, renew policies or send in a tax return, this will save you a lot of money, time and hassle further down the line. If you don’t understand financial regulations, this can have disastrous consequences.
Plan for the future
When you’re managing a company, there are few things more important than planning for the future. When it comes to money matters, you need to make sure that you can cover wages and bills now, but you also need to try and do everything possible to future-proof your finances. Keep an eye on your cash flow, look for ways of maximizing your profits, and plan a growth strategy in detail. Every entrepreneur wants to get to a stage when they can expand the business and try and take it to that next level, but getting your timing right is essential. If you move too soon, you may fall short in the funding stakes, but if you wait too long, you may find that a golden opportunity has passed you by.
Get to grips with pricing
If you have a complex or confused pricing strategy, this can make it more difficult to manage your finances, so try and ensure you have clear plans in place. It’s also essential to make sure that everyone is on the same page. If you have some employees charging different fees to others, this is going to upset the apple cart. Make plans, set objectives, and stick to them. If the strategy isn’t working, adapt it, and relay this information to colleagues and clients.
If you own a business, you’ll know all too well that your success will be measured mainly on figures. If you can turn over a profit every year, this is going to set you up a bright future. To achieve success in business, it always pays to be mindful of money and to ensure that you run a tight ship when it comes to your finances. If you’re in charge of accounting, it’s wise to look at modern software programs that make the task a lot less daunting. It also pays to seek expert advice, especially if you run into problems. Be proactive from day one, adopt a plan and be clear about your pricing strategy. If you any questions or concerns about your accounts, always ask an expert before you proceed. It’s better to be safe than sorry.
Managing creative employees
Designers, journalists, photographers are talented and not ordinary people. At the same time, you can often hear that they can be easily distracted. But if someone complains about the uncontrollability of the creative employees, one simply does not know how to organize them.
How to manage creative employees
Designers, journalists, photographers are talented and not ordinary people. At the same time, you can often hear that they can be easily distracted. But if someone complains about the uncontrollability of the creative employees, one simply does not know how to organize them. Find out how to organize your creative employees in the best way and without unnecessary stress following the tips from these 10-page papers.
The method of the stick doesn’t work
Formally, creative people are no different from all others. And informally, of course, the difference is obvious. The geniuses have other motivators. For example, for them recognition is more important than money. A free schedule is more comfortable than working from a call to a call.
So, it’s advisable to rather choose the right leadership style to live in peace and harmony. In the scientific literature, four types of management are distinguished:
- Authoritarian. When everything in the company occurs at the behest of the head, and the subordinates are obedient executors.
- Market. Relations in the team are built on the principle “you do something for me and I’ll do something for you.” This is kind of entrepreneurial approach.
- Bureaucratic. The company has clear regulations, management orders are not discussed, and all employees are disciplined and executive.
- Democratic (humanistic). This is a paradise for creative workers. The staff of the company is one big team, where everyone is given chances to realize their ideas, even the most grandiose ones.
Follow your line
The main words to the manager is to become the creative leader himself. However, it makes no sense to create without knowing the measure and purpose. Therefore, top managers of innovative companies adhere to the following principles when running a team:
- Self-management. Provide employees with a field for activities, not pushing in their strict framework, but also avoiding arbitrariness.
- Personal responsibility for the result. Do so that every member of the team understands that the success of the project depends on it. Praise because creative people like approval very much.
- Freedom. Every employee has the right to work as he likes. Work from home, at night or daytime – in fact it’s not important. The main thing is the result.
- Tasks for interests. A routine is the most terrible word for creatives. They are bored sitting for a long time in one place, doing the same thing. A maximum of three years, and the true creator will run away, even if you give him free breakfast and lunch. So periodically change everything: tasks, areas of responsibility, and projects.
Looking for talents
In order to prevent the search for personnel from turning into a torture, one should immediately pay attention to those candidates who are equally capable of working both in the office and in public transport. And at the same time to give out unique intellectual products that did not exist before, absolutely viable.
During the interview, offer the applicant a simple test. For example, to come up with as many options for non-standard use of a paper clip within one minute. The candidate writes the answers on a letterhead, which is then analyzed.
It’s more interesting for the creative person to work in a circle of like-minded people. It is not necessary for this to open super offices where you can ride bikes or lie on bear hides.
The creative environment is a mood, a climate, a kind of comfort. Everything will turn out fine if you take into account some features in time:
- Create friendly relations. It is very good when you can communicate freely the company, without hierarchy, consult all issues directly with top managers and take the initiative.
- Support the staff. In a good working climate, ideas and proposals are received with interest and are welcomed by leaders of all ranks. Often arrange brainstorming so that everyone can feel the team spirit and positive attitude.
- Demonstrate trust and be open. When each person puts forward ideas and is not afraid to express his opinion, the emotional burnout of staff will not overtake.
- Joke so there will be ease, spontaneity, and a friendly atmosphere.
The best ways to protect your business against financial fraud
Businesses of all types can fall victim to fraudulent activity, from the smallest of enterprises to the largest multinational organisations. Financial fraud is all-too-common and can really impact on the image and reputation of any business. But, there are steps you can take to protect your business against fraud, and here’s how.
Keep a closer eye on your accounts
You need to keep a close eye on your accounts because, if you don’t know your company’s figures, how are you going know whether or not you have become a victim of financial fraud? Criminals are clever and they will be able to steal large sums of money from you over time, without it making a noticeable difference to your daily working operations straight away.
One of the best ways to stay on top of this is to invest in a software solution that allows you to keep track of your finances at-a-glance whenever and wherever you want to see them. The easier it is to access your accounts, the easier you’ll find it to monitor what’s coming in and out and spot any transactions that don’t look right.
Employee background checks
These days you need to be vigilant so consider running background checks on potential employees who will be handling money for your business, whether this is dealing with cash or financial records. Having employees that you can trust is the first step to combating potential fraud – they are, after on the front line against fraud.
Firewalls and virus protection
Make sure all your computers, including the ones used for work outside of the office, are fully equipped with the latest firewall and virus protection software. Malware and spyware are ones to consider as these could be used by fraudsters to trick their way into your systems.
Have your employees regularly change their login passwords. Passwords should ideally be changed every 60 to 90 days and have at least eight or more characters featuring upper and lowercase letters as well as numbers. Again, this is all about making it harder for people to hack into your systems and access your private financial data.
Keep company information safe
Your business requires you to hold information such as employee identification numbers, tax, wage and other sensitive information. This should be encrypted and safely stored, with access only given to those who require it for their jobs.
You should also keep important paperwork such as checks protected and in a secure location that is not easily accessible to the wrong hands. When it comes to disposing of any company documents, shred them. Being cautious with your business information is an important step to preventing fraud. If you give nothing away, there’s nothing for fraudsters to latch onto.
Protecting your business against financial fraud should be an important priority. Take it seriously, follow the steps above and give yourself the best possible chance of staying safe.
Francisco Reynés: “Naturgy wants to play an important role in Europe”
Francisco Reynés, executive chairman of Naturgy (formerly Gas Natural Fenosa), has mentioned the great value of the energy multinational company in the reorganisation of the sector in Europe. He has also expressed that they are open to corporate acquisitions.
Francisco Reynés has made these statements during an interview with the Spanish newspaper EXPANSIÓN, leader in economic news.
Francisco Reynés has mentioned the Naturgy Strategic Plan for the period 2018-2022, which was presented some weeks ago in London; a plan that promises its shareholders to increase the dividend in cash by at least 5% per year until the end of the period.
To reinforce the new shareholder remuneration policy, and if the intended acquisitions do not materialize, the company could allocate a maximum of € 2,000 million in the period as share buyback.
About this possibility, Francisco Reynés has explained that “in march, when we started to design the strategic action plan, we decided to conceive it without restrictions so that we can accomplish our own strategic decisions”.
“We want to demonstrate that it is not necessary to buy another company; Naturgy is in a position to develop by itself”, he added.
Once the strategic plan has been drafted and presented, Francisco Reynés has recognized that “it is important to look at everything”. It is not a race where you are running alone, you have to look what the competition is doing. To grow in business should not an obsession, it is rather an option”, he said.
Francisco Reynés has also insisted on the need to “play an important role in the reorganisation of the sector (…) We can be a relevant energy actor in Europe”, he concluded.
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