DOZEN RULES TO DO NOT LOSE MONEY ON “EMPTY”
What if we conduct financial accounting only for the tax, and keep personal finances and company money on one card? And also to make the costs not immediately, but what will be the time?
Alexander Solovey and Ivan Kaunov are the founders of the Finmap service, which helps companies manage finances. In the column for LABA, they told the elementary rules with which you will stop losing money on trifles.
1. Do not mix personal money with business money
If it is difficult for you to do this, because business money sometimes ends up on your personal card, get a separate card. So you will always know when and how much was taken out of business according to plan.
But what if mixed?
Imagine a situation: a business has two owners, and one urgently needs to buy winter tires. There is no cash with you, there is $ 50 on the card, but at your fingertips is the cash desk of the company. With the thought “Tomorrow I will return” Anton took money from there and changed the car.
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Already know what happened next? Wound up in the operating system and personal affairs, Anton forgot about this case. At the end of the month, with a partner, they were looking for a loss of money for a long time and almost fired an important employee.
Spent a lot of time and nerves. Two days later, Anton remembered where the money went, but alas … “the sediment remained.”
2. Use the accrual method
The only way to calculate the profit of your company is to calculate the income and expenses upon the completion of work and the receipt of services, and not upon the receipt and write-off of money.
What if the old fashioned way?
If you do not count the accrued income and take into account only the money received in the account, the following picture emerges: you constantly work on advances and cannot calculate the real profit of the company. A month comes a bunch of surcharges for long-completed projects, and you think: “Oh, how much profit.” But each month, earning the same amount under this scheme will not work – first you have to accumulate debts.
3. Define the purpose of financial accounting
Set yourself a specific goal or task. For instance:
– analyze the structure of expenses and optimize it
– instantly see the current financial condition of the business and at any time know how much money is in the company’s accounts and how much you owe
But what if you keep records only for tax? Reports passed, and okay.
One very correct entrepreneur (hello Anton!) Kept a record of 12 months. I didn’t really understand why, but if it was so right, I did it so that accounting was just there. Later, Anton decided to increase the profitability of the business and turned to a consultant.
There was nothing to answer to the offer “Let’s first look at today’s profitability by directions”. She was not considered, and was not even going to. I had to spend a month to transfer data for the whole year and see a picture of profitability in the directions.
4. Set accounting rules and standards
There are accounting standards for finance. But there are also things that you must establish as additional rules within the company. For instance:
– mark projects in all transactions in order to see profitability for each separately
– mark all sales with a discount
How will this make life easier?
The company is engaged in the design of apartments. 80% of transactions are receipts for work performed and accrual of income under contracts. The rest is salaries, rent and other expenses.
That is, most of the transactions (80%) are very similar. The guys gave the task to the accountant: “Payment will come – be sure to note the area of the city and the style of repair.” Now, with each receipt, the necessary analytics is automatically collected.
5. Select the appropriate tool.
Still spending a ton of time creating a bike in Excel spreadsheets? Better pick a ready-made tool for analytics.
How to choose?
The company is engaged in the rental of premises. The main task is to see the profitability of each apartment. We tried one service, but it turned out that there was no convenient breakdown by project. We took another – we found out that it is impossible to separately distribute dividends. A suitable service has not yet been found.
Conclusion: first determine which parameters you will take into account, and only then select the service. We also noticed that often this is a method of procrastination. We ask the client: “What should you see in the service in order to understand that it suits you?” Answer: “You know, I have not thought about it yet.” And it would be necessary.
6. Delegate routine
In order not to waste a lot of time on the routine data entry, distribute these tasks among employees. Let everyone contribute what they spent and received. Or assign this task to the financial manager.
But what if you keep records from time to time?
Children’s art school. The manager did not really like all this routine work, so he entered the data once a week: he simply transferred it from a notebook and leaves. Sometimes pieces of paper were lost, expenses passed into the Other category, and the manager spent 3-4 hours every Friday to sort things out.