The Value of Great Financial Management and Planning By Amir Sohail Rammay

There are many businesses that face failure due to poor financial management.  An analysis by the well-known financial advisor, Amir Sohail Rammay, states that less than a half new businesses exist over 5 years. As expected, financial problems is the reason behind certain startups to fail. Financial hardship is often an outcome of poor financial management, yet can also be an indicator of other, largely in-depth issues, such as lack of market for the product or superior competitors.

Better Financial Management in Business

Competent financial management includes thorough records keeping as well as proper planning. As a business owner you require to manage your cashflow so that you can pay expenses such as you rent, utilities and payroll on time. For this, you require to expand your expense over the year and provide your clients or customers strict payment terms.

Cashflow Problems and Invoice Financing

Based on the company you work in, you may inquire you customers to pay openly or on receipt, or you may accept on payment date. If you have agreed otherwise, your customer is legally bound to pay you within 30 days of getting back you invoice or receiving the goods or services you have provided. If they pay late, you have the authority to charge interest for late payments.

In case you are having cashflow issues, then invoice financing could be an alternative. This is when a third part buys the debt owed to you by your customer or lends you money against your not paid invoices to assist you produce money when times are tight.

Financial planning

The appropriate method for good financial management is forecasting and planning. You require memorizing carefully about any capital expense and assuring that the money you spend will be earned by the income produced by your new purchase.

You likewise require to work hard to decrease your expenses as much as possible. Additionally your financial plan requires to consider the tax bill you will need to pay and perfectly feature in some contingency funds if anything surprisingly crops up.


This is how you can save your cash from unnecessary flowing out of control and prevent your business from getting fail.

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