When you’re a small business owner, understanding financial management comes with the territory and it’s really never the most exciting part of running your business, but it needs to be done. Below is a great article we found that explains the importance of understanding financial management so you can run a smooth and healthy business. This will not only give you peace of mind but will also help you in getting the right financing for your business when you need it.
Running a small business without understanding financial management is nearly impossible. It was not always like this. Before the days of credit cards, everything was paid for in cash. Even when a small business provided credit it was only to their best customers and usually for small amounts.
Let’s face it, managing cash payments is much easier than accepting credit cards. You don’t have to worry about merchant banking fees or the two to three days’ lag before payments are deposited in your account.
However, operating a cash-only small business could actually be costing you money. Not only do your customers need to have cash on hand. But cash only policies preclude you from selling anything online. This is where financial management comes in. Continue Reading