Strong Financial Management = Strong Business Relationships

When I first became an entrepreneur I had the idea that if I just focused on building a successful business – all the “money stuff” would fall in to place. I’d never considered myself great at math. I certainly had no desire to be anything remotely resembling an accountant. And besides – all the other stuff – building a website, getting a great logo, developing products, working on marketing strategies – were all SO much more exciting than financial management. Well, have you ever heard someone say that “money is not the most important thing in life – but it is certainly one of the most impactful things? The reality is that there are many, many ways that ignoring the financial side of your business will come back to haunt you. And one example is in the area of your business relationships.

As an entrepreneur, you are always working to develop strong business relationships – not just with clients – but also with suppliers, service providers and employees. It is important that you not overlook the negative effect that poor financial management can have on each of these relationships, creating a snowball negative effect on the success of your small business.

Your customers no doubt buy from you because they see that you have good products and/or services, offered at a great value. Your ability to continually meet the needs of your customers in terms of price and quality, depends upon the financial strength of your business. Financial organization is also critical in this area. Clients want to feel confident that they are working with a professional. They’ll form lasting judgments based on the efficiency and ease of your billing process, including invoicing, accepting payments and even returns.

Your suppliers are also of course essential to your business. They need to be paid on time per your agreements to that they can cover their needs. An entrepreneur failing to stay on top of the financials will quickly strain supplier relationships making it difficult, if not impossible to remain in business. The same can be said for any service providers you choose to work with. Strong financial organization and planning will help you to determine when you are ready and able to enlist a particular provider. Remember that service providers like accountants, marketing companies, publicists, designers, etc. will also be providing services for individuals who could be wonderful clients for your company. The better your relationship – the more likely they are to provide strong referrals.

Finally, remember that you would be nowhere without the staff and/or regular independent contractors who support you in your business. They rely on their monthly paychecks as much as you rely on them to keep your business running. It can be easy to overlook the business relationships you are developing with your staff, especially if your business is still struggling to be profitable. However, putting your employees first – giving them bonuses and other incentives whenever possible – has the ability to pay you back tenfold.

Financial Management Software Keeps You in the Driver’s Seat

Technology has come a long way, but cars still don’t drive themselves, and financial management still requires time and attention. Like advancement in automobile technology that alerts you before you run into an object or automatically turn your lights off, money management software programs and online services are making it easier to keep a budget and meet financial goals, but you have to stay in the driver’s seat.

The Players
Two names have dominated the financial management software market for several years: Microsoft Money and Quicken. In fact, in an informal poll, more than 35 percent of respondents said either Money or Quicken is their software of choice. Another 18 percent use a free, Internet-based service called Mint.com.

For those already familiar with Microsoft Money, note that it is no longer available for purchase, and all existing software must be activated before Jan. 31, 2011.

How They Work
The original leaders in financial management software rose to the top by selling boxed software through computer stores, big box retailers and online businesses. Most of them also have online components, but you’ll need to load their software onto your hard drive for everything to work together. On the positive side, these packages usually offer more extensive versions for managing small businesses or rental properties in addition to household finances.

A new breed of Internet-based software is giving the incumbents a run for their money (no pun intended). Mint.com has proven popular, or others like JustThrive.com, MoneyStrands.com, Mvelopes.com and more. These sites are primary targeted to household consumers. You usually start by creating an account, but there shouldn’t be anything to buy or download to your hard drive. Plus, since everything is Internet-based, you’ll likely have access to all your information from any Internet connection any time.

Managing Your Money
Whatever site or software you choose, you’ll find lots of tools to help you categorize your spending and saving, which is helpful for sticking to a budget or setting financial goals. You’ll also be able to give the software secure access to your accounts at most U.S. banks, brokerages, lenders, credit card companies and more, so it can download your current balances and transaction details. With all your account information in one place, you’ll get a better look at the big picture.

Most sites will educate you on new or better ways to manage your money and provide access to products that will help you succeed. For example, you may get a recommendation or a savings account or other savings product that offers a higher interest rate or a credit card with a lower interest rate than what you currently pay.

Another great tool is the ability to categorize your expenses so you can see where your money goes and adjust your budget accordingly.

Staying in the Driver’s Seat
Many programs may give the impression that they offer completely hands-off money management, however, chances are good that you’ll need to invest time regularly to maintain records that provide the most value. If you slack off for a week or month, it will be hard to catch up and your dedication may wane.

The ability to categorize expenses is a good example. Most programs automatically assign categories based on the name of the vendor or retailer. That usually works and can eliminate a lot of manual work, but what about the restaurant charge that was actually a Christmas gift card?

Another helpful feature to look for is the ability to break out a single charge into multiple categories. For example, if you usually buy a soda and candy bar when you pump gas, you’ll actually want gas in one category and food in another. Just think of all the different spending categories you may touch during a trip to Super Target or WalMart!

While most sites will download transaction information from financial and lending institutions, you may want to consider recording your own transactions, much like a check register. The download then provides a helpful way to compare and cross check for accuracy. Mistakes happen.

As with most things in life, the more you put into your money management software, the more you’ll get out of it. Automatically generated charts, graphs and reminders can help keep your financial house in order as long as they are based on accurate, detailed records. And, when it comes to your wallet, remember you are still in the driver’s seat!

Financial Management During Contingency

Despite adequate salary or security, a number of people might find it difficult to stretch out their finances till the end of month. As it is, the only tried and tested way to this problem is by putting an end to the over extending finances. Financial crunch can prove to be a devastating situation. As a matter of fact, families continue to put to test to make both their ends meet every month, despite an adequate salary, along with a dependable job.

In general terms, there can be only two solutions for getting across the spending deficit equation. So, you can take care of this problem by either increasing one’s salary by a considerable margin, or by living below one’s financial means acutely.

The following are some of the tips which can help you get out of this terrible situation:

1. Pack up your credit cards and try not to use them. Make sure that you use them only in case of acute emergency. Avoid purchases, until you are in a position to pay for them in cash. You can also negotiate with the credit card company. See if they are offering any waivers. Avail them if possible. This would help you a great deal.

2. Make sure that you are maintaining your records properly. Set up your own targets and make zealous efforts to fulfill them. Also you can take the help of various soft wares which are available in the market, which can help you in doing so.

3. Track all your accumulated debts and list them according to a priority basis. Make sure that you put the debts with the highest interest rates on top, and use as much of your income as possible in paying off these debts.

4. Always make sure that your budget is on the right track. Do take care to see to it that you are not exceeding your budget. Fix your purchases on a priority basis, starting with bare necessities. Make sure that you stick to your budget. Avoid buying unnecessary items. Also, make sure that you have to be practical in your approach.

5. You may also opt for debt consolidation loans. These can help you to consolidate all your debts into one single loan, thereby lowering your monthly interest rate as well. You can also opt for Christian debt consolidation loans.

6. Apart from reducing your expenditures, you should also look forward to improving your income as well. You can opt for a part time job, which can help you to improve upon your income sources, without disturbing your current employment.

With the help of the above methods, you could hopefully be able to tackle this crunch situation.

Professional Financial Management

When seeking a company to take care of your financial management needs you have several options to consider. You can take all of the stress of preparing financial documents and collecting of fees off your hands and into the hand of a professional management team. Financial services can help with budgets, taxes, and most any other financial services needed. If you have any financial needs, you may wonder when to seek a management company.

When seeking some form of financial management help it is important to select a company with a ton of experience in that line of work as well one that will work with professionalism towards your specific financial needs. Finding a company that will work with you to meet your needs as well as take the extra step in customer service is very important. Some of the following services can be offered, assisting the board or community head in the preparation of a budget that includes a yearly budget as well as a plan for a long-term budget, collection of all funds including homeowners dues, assessments, and late fees, etc, bill, collect, and enforce homeowner dues and fees, preparation of all financial statements, payments, and invoices. As you can see, there is a lot of work that goes into financial management so it is important to choose a company with a good reputation who can handle your business and take the burden off of you.

Now that you are aware of some of the things a team of professional financial management professional can do you for you, you may be curious about selecting a company to take on your needs. First, a basic internet search can connect you with local experienced companies who specialize in that sort of thing. When selecting this type of company you may want to get reviews as well as recommendations from other satisfied customers to make sure you know you are doing business with an experienced company. If you feel like you have found the right team for the job you may want to sit down with them and discuss your needs and ask several questions about how your needs will be met. This procedure may include the writing of a contract to ensure what you say gets carried out over a long period of time. Now that you have found the right company to manage your financial needs you can relax and know that you are being taken care of by a professional team.

Financial Management and You

Financial management revolves around making fiscal and monetization decisions in a business enterprise. It dictates the financial direction of a corporation and introduces you the concepts needed to the thinking steps and tools. The goal is generating more revenue and increasing the value created for the share holders. Financial management is different from corporate finance in that the latter deals with the fiscal decisions that a corporation has to make against a body.

Also the principles and concepts used by corporate finance can be applied to the world of financial management. We can break down financial management into techniques and rationale about long-term and short-term decision making. Most capital investment decisions are made thinking in the long term because they deal with investments. Financial management also deals with the methods to finance a corporation such as equity or debt, and the decision of whether the firm should pay dividends or not. It also deals with some short term decisions about updated liability and incumbent balance of equities. Dealing with inventory and liquidity management are other things management of finance has to perform. It also has to do with giving credit to customers and short-term loans.

It deals with investment banking using the help of corporate finance. Investments bankers assess the financial needs of a corporation and deliver the capital where it is needed. Many times it is called corporate finance because it involves getting capital to finance the acquisition, expansion or purchase of a business. Capital budgeting is a methodology used to find the right sources of capital and allocate investments the right way. It has to analyze future cash flow, long term investments, its size and whether it is a right time to do it. The investment that will be chosen have to undergo a DCF valuation and if it offers peak performance it win the selection process.

Sometimes it is difficult because it is also referred to as consumerism. It is possible to overspend in many subjects. This situation will lead to huge credit card bills. A fiscal crisis will come when someone spends his/her money before earning it. A financial management book is what is needed in this situation. Most of us dream of becoming millionaires in a short amount of time. However, monetary management is needed if we want to demonstrate our capacity to create wealth. The task of a management book is showing you where to go if you need advice or tools to manage your money effectively.

To prevent loses and effectively manage your income, you need the help of a financial management book. Economic independence is within reach if you read a financial management book and apply its principles. First off, you need to change your mindset. It is important to change our perception about money and its purpose if we want to become wealthy. Learning the nuances of finance will help you deal with your financial concerns, your strengths and weaknesses. You will use a financial management book because it is very hand, and the financial subject tricky.