6 Stages of Smarter Money Management

6 Stages of Smarter Money Management

Have you been waiting for 60 days for a customer or client to pay you?

You’re not alone

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The 6 Stages of Smarter Money Management

We know you don’t want to be worrying about financial challenges like getting paid on time when you could be winning new clients and customers and growing your business. And, here’s the thing.

Ensuring you get paid on time is just ONE of the SIX stages of money management that every business goes through. The good news is you can draw from the experience of more businesses than ever today.

According to 2018 Central Statistics Office (CSO) statistical release*, there were a record of 250, 033 enterprises at the end of 2016, an increase of 5,838 since 2008.

 

Sage talked to some of the smartest business owners and managers in the UK and around the world. They told them what they do to master each stage of money management, from when they were just getting started to the moment they achieved financial mastery.

In this ebook, we’ll explain the six key stages every successful growing business goes through and how you can move from one stage to the next.

The Six stages of smarter money management – A Summary

Stage 1:  Claiming your most valuable asset – Time is the one thing you can keep pumping into your business but which you’ll never have enough of. If you spend it the wrong way, you’ll never be able to earn it back.

Stage 2:  Setting measurable targets for your team(s) – Rather than setting a general goal like “I want to grow my business,” decide what exactly you want to achieve. For example, are you going to grow your business by increasing sales of by cutting costs? Doing both at the same time could prove problematic.

Stage 3:  Paying your employees and suppliers on time, every time – Ensure you have a good system in place that alerts you to important dates, such as an upcoming renewal, and if you need to do anything in advance (like filling out paperwork for example). Working ahead gives you time to sort out any blips or problems.

” Dealing with accounting deadlines and employee returns is much less stressful when you know what you need to action well in advance”

– says Rachel Parkins, creative director at the Balagan Group and a Sage Business Expert.

Stage 4:  Mastering your business’s cash flow (once and for all) – Cash flow is the oxygen your business depends on for survival. You need more money coming in than going out, and it must arrive on time for you to pay suppliers and purchase stock. If you’re a new business owner or manager and you’ve yet to master cash flow management, it doesn’t have to be a challenge.

Stage 5:  Managing your finances on the move – Mobile devices offer great opportunities for building customer loyalty, keeping up-to-date on the financial health of your business and managing a growing company. And they become even more useful if you manage your company’s financial information in the cloud.

Stage 6:  Using reliable financial insights to accelerate growth – If you want your business to achieve financial mastery, your team shouldn’t have to spend hours preparing a report to see if revenue projections are on target and you should be able to review and understand the financial health of your business at a glance.

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* Business Demography 2016, CSO statistical release, 04 July 2018
https://pdf.cso.ie/www/pdf/20181024015127_Business_Demography_2016_full.pdf