Business credit cards are one of the popular types of businesses to be cultivated. Business credit cards have many advantages such as flexible working hours where you can make sales transactions anywhere and anytime.
You can also have a very broad market share. Unfortunately, not a few business pulses that finally closed down.
Manage Business Credit Cards
Many things are factors, one of the main factors of the bankruptcy of the credit business is that the businessman does not manage the credit business finances well enough.
Here’s how to manage credit business finance that you can apply very easily:
1. Separate Personal and Business Money
This is still often forgotten by the beginners, they consider their business is still small so they do not need to separate their personal money with business money.
Though it can be a major mistake that can disrupt business cash flow. Because by combining the two money, then you will have difficulty in controlling income and business expenses.
Therefore, no matter how small your business should separate business money and personal money. So you can record all business transactions neatly.
2. Arrange The Capital Into Two Groups
In managing the credit business, of course, you will need to have capital. In the credit business, you need to top up your balance before starting a credit transaction.
At this stage, you need to prepare several groups to top up your balance so that you will never run out of balance. Running out of balance can affect the trust given by the customer.
Certainly, not a good thing when buying and selling transactions are many, but you only have a small balance left.
3. Bookkeeping For Transactions
Every transaction certainly needs to be stored and recorded properly. You need to make notes about the credit transaction that occurred.
Recording transactions will help you manage your finances better. You can find out the balance you have, the benefits that you can and the development of your credit business.
4. Separate Records For Different Transactions
The next way to manage credit finances is the need for accounting for each transaction.
For example, a transaction to top up your balance should be noted in a separate book accompanied by the date of the transaction.
Likewise with every credit transaction that occurs should be recorded in a separate book.
5. Make Transactions in Cash
Business credit cards are often problematic or even bankrupt because too many receivables are owned. Business credit cards customers often do not immediately pay for credits purchased or credit.
but the payment process can be hampered. As a result, the money you have does not increase and even decrease. There is also no funds to pay to top up the balance.
The easiest way to overcome this problem is to do transactions in cash. With transactions in cash, you will not worry if there is a jam in the customer.
6. Avoid Looking For Employees Too Fast
Employees will certainly be needed by an entrepreneur to manage his business. You will be helped in running a business and can do various other activities more freely because you already have employees.
But you should avoid looking for employees too quickly. Before deciding to look for employees, it is better to do an analysis of the workforce needs.
You need to remember that looking for workers will add to the burden of salary every month.
If your business has just started and your finances are not possible to hire employees, you should postpone finding employees.
7. Minimize Expenses
Of course, you need to save expenses so that the business can survive at the beginning of the establishment of a business.
As we know at the beginning of business formation, finance is still not stable and will require a lot of capital to develop it. Usually, you will find fixed and non-permanent expenses.
Fixed expenses are expenses that still need to be paid even if you do not have income, while non-permanent expenses are expenses that depend on your situation and condition. You can save or cut this type of expenditure.
8. Owe It Wisely
Often you will need to borrow funds from other people, banks or financial institutions. These additional funds can be used to expand your business and grow your credit business.
Don’t borrow too many funds. Before you start borrowing money you should calculate the funds you really need and the repayment period that you can afford.
Calculate the interest you must pay. The more loans and the longer the tenor, the greater the interest you need to pay.
If indeed you don’t need to borrow too much, then borrow as little and as necessary. So you can be lighter in repaying loans every month.
9. Control Cash Flow of The Business
Ideally, you should make financial statements at least in and out of money. If the cash flow runs smoothly, then the business has a great chance that the operation will run smoothly.
Sebalinya, if cash flow is disrupted then business operations may also be disrupted. Then you must routinely control the cash flow of the business.
If there are obstacles in the cash flow, then the location of the error must be analyzed immediately.
10. Make A Recapitulation
Make a recapitulation every week or every month. The recapitulation will help you to oversee the business.
You can also find out whether the business is developing or actually experiencing losses. That way you can immediately take a variety of actions needed to make business finance healthy again.
11. Know The Minimum Cost of Living
Calculating the minimum cost of living turns out you need to do before when studying business. Calculation of the minimum cost of living will help you in determining the amount of your salary each month.
Of course, you are not allowed to mix personal expenses and business expenses, so to prevent this from happening you need to pay yourself a salary.
When you know the minimum cost of living, you can withdraw that amount from the credit business income as your salary.
That way you can return the remaining credit business income for business management. Similarly, if the credit business is a side business. You can take just the amount of money you need.
12. Allocate Monthly Expenses
The next way to manage business credit card finances is to set an expenditure allocation each month. Calculate your business expenses each month including your salary.
Don’t use business money for your personal needs. If you do need business funds for personal expenses, then you must record it as debt and you must be responsible for returning it.
13. Avoid Temptation
At the beginning of the period, you need to make a shopping list or plan for the funds you have. Determine what you need to buy and develop.
This can be the biggest challenge in the credit business. Keep referring to the financial portion you have made and avoid buying things that you don’t really need.
Before buying an item for business purposes, you need to make sure the item is really you need or just what you want.