Small business owners face a multitude of financial challenges as their business grows, and one of their biggest encounters is knowing whether they have a financial deficiency or financial management challenge or both. Below is a great article we found that should help you identify and understand these different finance situations so you can manage your cash-flow efficiently.
Small businesses face a range of diverse challenges in their day to day operations. However, the greatest challenge that is common for all small businesses is the lack of enough funding. Other small businesses may be having enough cash to fund their short-term working capital needs, but managing the how the cash flows in and flows present a big challenge to them. To overcome these challenges, an understanding of how funds flow within your small business and how to manage the flow of funds is necessary.
As your business grows, its financial demands also evolve with it and with the changing funding needs come new challenges. The first challenge is the sudden upsurge in your incomes from your operations as they grow in number due to high customer demand and exponential sales growth. For most small businesses, they operate using very basic accounting tools such as customized Excel spreadsheets or QuickBooks. As the number of activities your small business handles the increase, the number of financial transactions also increase; resulting to a need for a more complex accounting and records keeping system. Continue Reading