If you are the owner of a Connecticut small business, it’s important that you be informed about every aspect of financing, from bookkeeping to cash-flow projects to securing loans from bankers. We have expertise in each of these aspects. However, the more you understand the vital components, the greater chance for your company’s success.
The following checklist showcases the main financial aspects a small business owner should be at least somewhat knowledgeable about.
Cash-flow projections. In general, your cash flow estimate will be equivalent to your total revenue minus your total expenses. It’s important to remember though, that these are moving targets, making cash flow projections both a science and an art.
Bookkeeping and accounting. Experts say that a company’s books are similar to the foundation of a building. Meaning that without it, you just can’t build very high. In fact, 25% of business that fail do so because of accounting difficulties.
Loan Proposals. Establishing relationships with lenders and securing loans is a process, not a one-time event. Your financial manager can work with you when setting up important proposals to ensure that you supply lenders with everything they need to know.
Know about savings and investments. Putting significant sums of money into a checking account that earns little interest means that you may be missing an opportunity to let your bank work for you.
Payroll. There are experts that can help you to make sure everything involved with payroll is secure and streamlined. This includes check writing, automatic deposit, meeting all federal and local tax requirements, etc.
These are just a few of the financial characteristics of running a small business that you should be aware of. Other factors that are wise to brush up on include keeping track of the ration between marketing and income generated by marketing, familiarizing yourself will different types of credit, and developing an overall financial plan.
At Sinclair Risk and Financial Management, we understand the extreme importance of a solid financial plan. When you partner with us, our team of seasoned and talented professionals will gain a full understanding of your management philosophy, goals, and individual risk tolerance. We’ll also get inside your business operation to identify exposures to loss that threaten your business. Contact us today at (877)602-2305 for more information.