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Checklist when planning a company budget 0 Money 1. Mixing business finance with personal money It often happens that the owner withdraws money from the customer payment card for personal needs or spends cash received from customers directly. Money is lost and it seems that they never existed. This creates the feeling that there is a business but no finances. It’s not entirely clear where they go. How to resolve the error: icon 1 Separate personal cash flows from business ones. You can assign yourself a salary as a manager (at market rates and take it once a month. This will reduce the number of payout transactions increase accounting reliability and make cash flow more predictable. Icon 2 Separate card accounts into personal and business cards.

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Now it’s not difficult. icon 3 Take dividends once a month after the financial result has been summarized. First check if there is a profit and cash flow to make a payout. icon 4 Carry out collections and transfer money in a non-cash form to the company’s Spain Business Email List settlement accounts. The owner must control payments from the account. 2. Lack of time for cash flow planning Both at the stage of business growth and at the stage of maturation cash flow planning is the number 1 function for a financier. How to resolve the error: icon 1 Plan income and expenses for 3-5 weeks in advance draw up a payment calendar and work strictly according to it. The goal is to predict the cash gap when you need to make a payment but there is no money.

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Knowing about it in advance you can find reserve or credit money. Icon 2 There are four possible sources of finance: owner bank (overdraft credit line commodity creditors (pay later debtors (get the money earlier icon 3 If you pay suppliers early bill customers BO Leads late and don’t keep track of past due receivables payments and business chaos ensues. 3. Lack of cash reserve and low liquidity Difficulties constantly arise in the market both with buyers and with banks and this must be taken into account. If there is no reserve of money it will be difficult to wait out difficult times. Normal liquidity allows you to live 2-3 months in a bad market without killing working capital.

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