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Managing Your Professional Servicing Business Finances

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  • Managing Your Professional Servicing Business Finances

    Managing your professional servicing business finances is extremely important and because it requires different expertise. Realistically, most business owners will require professional guidance to properly manage their business finances. The two most important associates for you to retain will be an accountant and banker.

    An accountant will provide assistance in a number of different key areas. He can oversee your bookkeeper, validating cash disbursements. You and your accountant will work together to develop a budget and cash flow statement. The budget will be used to ensure you have an adequate profit margin or you'll need to either change your pricing structure or reduce expenses.

    Your banker will also require a budget (along with cash flow statements) if you apply for loans. The other crucial statement will be the cash flow statement which is a forecast of your revenues and expenses by month. If you don't have enough cash coming in each month to pay your suppliers, employees, and other expenses, you will either need to have cash in the bank or arrange for other financings.

  • #2
    It's a good idea to have separate business checking and credit card accounts for your business expenses. It will be easier to track and justify your business costs for tax purposes. If you choose to incorporate, you can protect your personal assets from any business debt. Besides your accountant, you should consider outsourcing other finance functions such as payroll and bookkeeping. Having excess inventory on hand can also drain your cash. Outside consultants can provide financial models to more accurately predict needs.

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