Many business owners don’t consider finance to be their forte. Many of them are “big picture” people who stay primarily focused on the overall direction of the company. But while staring at financial spreadsheets or spending hours going over expenses isn’t usually fun, they are important aspects of any corporation that can’t be overlooked.
As someone with immense corporate accounting experience, Mayank Gupta understands just how important being financially savvy is to any type of business. Having worked in finance and accounting for major corporations such as Deloitte, PWC, and General Motors, Mayank Gupta is well-positioned to offer advice in this field.
To help spread his knowledge of corporate accounting and finance, Mayank Gupta is here to give the following advice that all business owners should follow.
Get Ahead of the Game
Procrastination is one way many businesses get themselves into financial issues. Putting off bookkeeping needs can seem convenient at the time, but severely haunt you later down the road. When you put accounting work off, it doesn’t just simply go away. It builds up and becomes seemingly more unmanageable. To make things easier, Mayank Gupta recommend breaking down finances into smaller categories such as expenses, employee compensation, invoices, etc.
Take Seasonal Cash Flow into Account
There are many types of businesses out there who see their cash flow change by the season. For instance, an accounting company likely sees a spike in revenue during tax season but might hit a lull sometime between April and October. Landscaping companies or construction services might also see their revenues rise during warmer months only to dip in the winter. Understanding your seasonal cash flow is one of the keys to financial success. Learning your businesses’ sales cycle will help you have the right amount of money saved at the right time of year to keep your budget as stable as possible.
Focus on Strengths
One issue many businesses run into is trying to create too many new services and products, and not focusing enough on their core strengths. Taking this approach can waste time and be less cost-effective for a business. Most of the time there’s no need to re-invent the wheel. Allocating more funds and resources to the company’s strengths has proven to be a solid business practice that can make company expenses much more practical and worth-while. Doing so can also prevent businesses from spreading their financial resources too thin.