Small business financial plan example can be an easy template to copy for business owners. Generating consistent profits is certainly one of the biggest dreams for every businessman. Because in running a business, revenue is a spearhead. Therefore, wise money management is very important for business continuity.
Poor money management will later affect your business’s financial records. If money is not managed carefully, then income, revenue and expenses will be mixed-up.
For those of you who are running a business, make sure you have the right strategy and financial plan. In this post, best practice will be disclosed as an example.
Read: Business Planning Example
Small Business Financial Plan Example
Finance is at the heart of any business of any kind. Because every movement in business is always viewed from a financial perspective. Financial plan will determine the next steps that must be taken by small business actors.
Read: Types of Business Plan
Therefore, it is important for you to manage your finances properly and correctly so that business finances can be controlled properly.
Here is best practice of small business financial plan:
- Separate personal from business finance.
- Budgeting expenses as wisely as possible. Avoid expenses that are not important for business progress, and make a priority list of needs and budget in advance which things determine business development.
- Record all business financial transactions. Prepare a special book to record every financial transaction that occurs in the business. Record all transactions and financial flows that occur, then copy them into the financial record.
- Control and supervise the cash flow of the business.
- Provide reserve funds. Prepare funds to deal with emergencies by estimating the problems that may have to be faced while running a business. After that, determine the total value of the reserve fund. This precaution can reduce the impact of problems that come suddenly.
The benefits that can be expected from implementing small business financial plan are more controlled business financial management so that the consequences and consequences can be explained logically.
Read: Why Core Values and Business Planning Should Not Be Separated
