If you are able to manage them you will get a financially well managed company.
Make sure that you get an invoice for all financial transaction you make in your company. When you buy goods, get a receipt. When you sell goods, issue an invoice. When you pay out salary, make a salary statement.
Every evening you organise the invoices, receipts, salary statements and other financial documentation. File them in date order in a ring binder. I necessary write a text that explains the content of the invoice if it is unclear. This make you remember the content of the invoice when you have to do the bookkeeping.
At regular intervals the invoices must be entered in a bookkeeping programme. If you have many invoices you may have to do it every day. If you only have five invoices in a week, you can do it once a month.
If you purchase a PC bookkeeping programme you can do it yourself. You can also outsource the bookkeeping work. Maybe to an accountant. Or to your wife, husband or to another family member.
All the invoices are now entered in the PC bookkeeping programme. The programme can now generate reports. Reports about the financial situation in the company.
Use the different reports to look critically at your company. Does it perform well? What can you do better? When you are doing this and acting on it, you are performing financial management.
It’s almost always harder to raise capital than you thought it would be, and it always takes longer. So plan for that.
– Richard Harroch, Venture Capitalist