Category: Finance

You Want Your Bank to Fund Your Business? Try These Tactics.

You Want Your Bank to Fund Your Business? Try These Tactics.

Many small business owners dread banks and have little to no relationship with bankers. They either see bankers as enemies, fraudsters, the group that does not want SME’s to be great or all of the above. The truth is while there is a lot of room for Bankers to improve their value proposition to SMEs, there is a lot SMEs can do to extract value from Nigerian Banks – especially in the area of funding.  A Bank will not just release other customers’ money to you without some level of assurance of getting the money back. Before we move into the guidelines of getting banks to give you a loan. let’s see if you qualify for one.

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Why Nigerian Businesses Fail: Financial Mismanagement

Why Nigerian Businesses Fail: Financial Mismanagement

This is the second installment in our latest series, Why Nigerian Businesses Fail. Read the first here.

2. Financial mismanagement

Businesses can go from high profitability to irredeemable bankruptcy in a short time, and that frightening transition can often be traced to a poor handling of finances. Many Nigerian entrepreneurs do not understand business accounting. And those who do are supposedly too busy to pay attention to the details of their finances. This is a recipe for business failure.

What does it mean to manage your business finances well? Continue reading “Why Nigerian Businesses Fail: Financial Mismanagement”

A Monthly Accounting Checklist For Small Businesses

A Monthly Accounting Checklist For Small Businesses

Following up on our weekly accounting checklist for small businesses, this monthly checklist will further help you keep your business finances in order.

1. Prepare and review your income statement, cash flow statement and balance sheet.

These statements can help you spot financial issues and fix them before they escalate.

2. Process your payroll and payroll taxes.

Employee satisfaction is important to your business. Avoid unnecessary delays in paying your employees by processing your payroll promptly. To save time, process payroll taxes along with your payroll.

3. Review business performance against past performance, financial targets and budget.

Compare the current month’s performance with the past month’s performance, taking your financial targets and your budget into consideration. This comparison will help you keep your spending in check.

4. Review and update your cash flow forecast based on business performance.

Compare the cash flow for the month with the cash flow prediction in your budget and make changes as required.

5. Reconcile your business account.

Check your business account for consistency, accuracy of transaction records and your cash position to avoid financial errors.

If you have a comment, a tip or a question, post it in the comments section below or send it to hello@theboardroomng.co. We’ll love to hear from you.

A Weekly Accounting Checklist For Small Businesses

A Weekly Accounting Checklist For Small Businesses

The all-important task of keeping your business afloat demands that you pay close attention to your finances, and it leaves no room for forgetfulness. But when you wear multiple hats in your business, you can be so busy that you simply do not remember to manage your account properly. If you’re that sort of entrepreneur, this short weekly checklist will help you stay on top of your accounting duties.

1. Check your cash position.

Know how much cash you have at the moment and project how much you will receive and spend in the following week.

2. Keep track of your transactions.

Document every business transaction in a spreadsheet or with an accounting app.

3. Pay vendors.

Your relationships with your vendors are important. Stay in their good books by paying them on time.

4. Send invoices.

You need money to run your business, right? Prepare your invoices well ahead and send them to be sure your revenue stream is not held back by incompetence.

5. Save and sort invoices, receipts and payments.

It’s not enough to document transactions. Save physical or scanned copies of invoices, receipts and payments made in files or on your accounting app, arranging them in alphabetical order for easy access.

If you have a comment, a tip or a question, post it in the comments section below or send it to hello@theboardroomng.co. We’ll love to hear from you.

Before You Take A Business Loan

Before You Take A Business Loan

The interest rate is unbelievably low, the payback period is convenient and the lender isn’t asking for your kidneys as collateral. So why shouldn’t you take the business loan?

The terms of a loan could be very attractive, but there are questions you must have positive answers to before you make a decision. For example, is it the right time to borrow money for your business? Also, can you justify taking the loan in absolute terms?

Let’s look at three situations in which taking a business loan is n

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