Being in business for ten years and being in business for ten days sometimes have very basic similarities. You need to know the basics that form a good business financial management plan.
First, and possibly most important to any business or financial institution, practice ethical behavior. With all of the uproar over Wall Street and the recent “Occupy” movements that spread across the country, it has become obvious that ethical practices are not only expected but demanded. This should be the absolute golden rule for any company.
Secondly, you need to write up a realistic budget. If your overhead is high, budget for it. You can always lower your overhead costs later and come in under budget. Isn’t that a better option than being over budget for some silly costs that you should have forseen? Sit down and plan out a realistic budget and stick to it.
Thirdly, locate yourself a quality manager or two. You need to be ready for anything unexpected. If you don’t have anyone on hand to manage your accounts for you, consider an outsourced CFO to do the job for you.
There are so many more principles that companies should adhere to to have an effective financial management solution, these are just three of several tips.