Sometimes only the passion is not enough to make a business progress. That’s the reason why a good financial management is needed, and the cash flow is part of that. The control of the cash inflow and outflow brings advantages for any type of business, including pet shops.
Considering that, we present below some important steps to help you maintain a good cash flow in your shop. The information of this text worth more than gold, so, pay very much attention! Let’s start?
The cash flow is used to keep registered all the business financial movement, in order to balance the money flow. In that way, it helps the entrepreneur in his/her short and long-term decisions.
Using the cash flow information, the pet shop owner or the financial manager can produce different financial analysis, such as: results management structure, sensibility analysis, balance point, period for investment return, and profitability calculation.
It is recommended that you check your cash flow every day. This helps avoiding unwelcome surprises and allows the identification of wrong information entered in the system.
Besides the daily verification, this action should be done monthly and annually. The annual balance of the pet shop allows a wide view about your business and the access to strategic information, such as: the most profitable service, in which month you need to improve your sales, in which month you’ve earned more money, among other precious information.
It is important to categorize the pet shop’s registers, no matter if they are operational or related to investments.
To do that, establish a financial inventory with all the pet shop’s fixed and inconstant expenses, the receipts and payments and the values used on investments.
Moreover, make it clear for the employees that all the money movement should be registered. This is crucial to keep a good cash flow and the financial controlling of your shop.
The follow up of the pet shop’s finances is advantageous, as well as seize the seasonality. Doing that, you can identify when the money movement is higher or lower. This directly affects your cash flow.
For this reason, use the cash flow as a way to be prepared for periods with lower money income. Set out strategies aiming the business health.
Manage your pet shop’s cash flow using a management system can be miraculous, since the system organizes all the financial movement, optimizes your work team time and automatizes the whole process, simplifying the situation.
Through the using of this tool you can rightly accomplish the payments dates and follow up the receipts. Furthermore, it is possible to integrate the purchasings and sellings with the payables and receivables.
That is the ending of the steps in order to maintain a good cash flow. Our advice is: don’t forget any of the points mentioned. The successful entrepreneur is that one who is always aware to everything that can make his/her business grow. Controlling the pet shop’s cash flow will certainly contribute for the boost of your business.
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The Perigot Cosmetic and Accessories wants to help you to deliver the best results in bathing and grooming. We offer high-quality products and a well known mark of cosmetic for animals. Check up our portfolio. You can contact us by phone (+55 11 5678 2326) or e-mail (perigot@perigot.com.br).
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