Amir Sohail Rammay: 4 Ideas for Managing the Financial Aspects

Each company either big or small, is always concerned about managing money. Appropriate financial management is important in present condition of unstable economy and the industry competition. Small companies especially require exercising concern with their financial decisions from the very beginning. It takes more than just an excellent strategy to run a business. 

Finance manager keep an eye on every activities together with what the company is investing, how much they are earning, balancing the reserves, and look after the complete finance. Amir Sohail Rammay is a finance manager at Al Saif Motors having an excellent knowledge in financial control, analysis, and extension.

There are 4 ideas for managing the financial aspects.

1.      Educate Yourself

The first thing that you should do is educating yourself about the various aspects of finance. Learn how to read financial reports. This is an important statement tells you all about your money – where it originated from, and how. 

Financial reports hold 4 crucial details – cash flow statement, income statement, balance sheet, and statement of shareholders’ equity. 

·         The cash flow statement examines investments, operating activities and financial in/outflow. 

·         The income statement imitates the revenue earned within a specific period.

·         The balance sheet gives information correlated to the company’s property, liabilities and shareholder’s equity. 

·         Shareholder’s equity symbolizes the quantity by which the company is sponsorship through common and preferred shares.

2.      Separate Personal and Business Finances

Forever keep your personal and business finances separated. This involves being paid a business credit card and putting all connected operating expenses on it. This must help you follow your outlays and keep you in control.

3. Cut Costs

It is essential that industrialists always keep a track of their expenses without obstructing customer satisfaction. Each business undergoes 2 types of costs – 

·         Fixed: While fixed costs have to be tolerate irrespective of whether your business is creating money or not.

·         Variable: there is scope for savings in variable costs.

4.   Invest in Cloud-based Accounting Software

Where as you can definitely download expected accounting software to manage your finances, it will never provide you the kind of expediency cloud-based accounting software can.

Each business wants a financial structure that makes a profit to stay convincing.  Industrialists require is to be prepared with excellent money management skills to turn their business enterprise into a success story.