How to Manage Business Finance for Beginners

As a business actor, of course you want the business you are building to grow bigger. So if you want your business to grow well, you have to pay attention to so many things.

One of them is paying attention to and managing business finances well, which element is a determining factor for the sustainability of your business.

In order to manage business finances well, of course you need to learn and know how to manage finances. Here are 5 ways to manage business finances for those who are just starting a business.

How to Manage Business Finance for Beginners

How to Manage Business Finance for Beginners

For those of you who are just starting a business, it is very important to pay attention to cash flow, capital turnover, asset development, as well as profit and loss.

Do not let due to lack of attention in this matter, you even experience losses. Here are some ways to manage business finances for beginners that you can try.

Separation of Business and Personal Accounts

The fatal mistake that novice entrepreneurs often make is to mix family, personal and business accounts.

Even though it would be better if you are determined to start a business, then you also prepare a special account that will be used as a place for incoming and outgoing money generated from the business you are running.

If you don’t separate business accounts and personal accounts, it’s not impossible that you will experience difficulties in managing your finances.

Another dangerous thing that can happen is that you actually have money that should be business capital for personal needs.

As a result of mixed financial management, you run out of capital and eventually the business you just started fails before it has time to grow.

Make Special Business Bookkeeping

The next thing you need to pay attention to in managing business finances is to make bookkeeping. The function of this bookkeeping is as a complete record of daily expenses and income, as well as the amount of assets and debts owned.

With bookkeeping, you can find out the losses and profits earned through your business. Also, if there is a loss of money or a mistake in the calculation, it will be easier for you to find it.

Paying Bills on Time

Paying taxes is an obligation as an Indonesian citizen. As a citizen as well as an entrepreneur, of course you also have this obligation to fulfill.

Make tax reports and payments according to the rules that have been set. In addition, if you have business capital loans, installments, or other business bills, make payments on time.

Late payments will usually be subject to interest and penalties, and this will obviously hurt your business.


In managing business finances, you need to prepare what is called petty cash, a predetermined amount of cash, to finance daily operations within a certain period of time. Don’t forget, record the details of every use of money from this petty cash.

Setting up an Emergency Fund

Another way to manage business finances that is no less important for you to pay attention to is having an emergency fund.

The function of this emergency fund will only be felt when your business is experiencing unexpected events.

As an entrepreneur, of course you can’t predict when an adverse event will occur.

That’s why you need this emergency fund as preparation so that if it happens, you won’t spend the business capital and profits that your business has worked hard to collect.

Even better if you also allocate funds for insurance as additional safe protection for your business.

How to manage business finances in this article is the most basic thing that you really need to prepare and do as best you can.

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