Monday, 02 May 2022 17:32

Tips for healthy business finances

Written by Evelyn Alas

To implement it correctly, they recommend the following financial management practices, to make it easy to make decisions, planning to achieve goals and actions to implement to start with the administration.

Control income, costs and expenses, pay attention to cash inflows and outflows, track cash control. The key concepts here are: revenue source, periodicity and monthly recurring revenue (or MRR). The latter is a metric that provides predictability and allows planning and measuring business growth.

Expenses and investments, high growth is synonymous with investment. It is always a good idea to invest in software and technology that will help the company to optimize and centralize communication, resulting in increased productivity and reduced labor costs and possible errors.

Data-driven culture, technological innovation is necessary to create networks and new features to expand business. In this way, the user base is strengthened and, consequently, commercial transactions increase and become more diverse and secure. This benefits consumers and also the companies themselves, because there are new ways of adding services and acquiring different value factors to meet market needs.

Financial indicators and cohort metrics, it is about having identified the main financial indicators considered when, for example, a SaaS (Software as a Service) technology company chooses to raise funds at scale, and cohort metrics will help to monitor their business and analyze them clearly for financial management with excellence.