You go to primary school and you’re taught that you have to get good grades if you have any hopes of getting into a good college. That college then determines the direction of your life. A good college means a good job, and a good job means good money. The root desire is always money. You need it to eat, live and survive.
It makes sense that a business degree would require you to take a lot of finance classes. Your understanding of money in all regards determines your ability to run a business and it determines how successful your business is going to be. Though you’ll learn this and more in school, here are some tips for managing money in business:
Separate Church and State
In regards to business, your personal finances are the church and your business is the state. The finances of the two entities should never mix. There will be serious repercussions if you have the habit of using the finances in one area to run another area. You may view it all as your money but in the eyes of the government this isn’t the case.
To keep yourself protected from legal repercussions, have a different bank account for your personal life and for your business. You’ll also want to have separate credit cards, one in the name of your business and the other for your personal life. Your company is a separate entity from you. As soon as you think the two are one, you’ll be in serious financial trouble.
Pick the Right Third Party Companies
Particularly in the case of finance management, where a small error can have a significant impact. Therefore, it is advisable to seek the help of external companies that specialize in financial management services. These can include hiring an accountant for accounting tasks, using financial modeling software to make informed economic decisions, and engaging a financial due diligence firm for auditing purposes.
Before signing a partnership deal with any company, do ample research, ask questions of others who have done business with the specific party, and if you consider yourself a good judge of character, go with your gut.
There are a million ways to manage money. It’s up to you to find the way that is going to put more money than you started out with back into your pocket. If you’re not there in your current dealings, you may consider changing your tactics.