In the world of personal as well as public/business finance, managing your income and funds properly can be somewhat of a tricky slope to slide down. Properly managing your money is truly what keeps your business (or just your wallet, if you do not have your own small business humming along. At the same time, getting paid in sizeable chunks, fully and on time, as well as properly understanding personal finance, microeconomics as well as basic macroeconomics, should be considered extremely important.
You will want to familiarize yourself with different kinds of banking and personal finance management, as well as receipt organization, bookkeeping, ledger-keeping, and financial record keeping. These are critical skills to have and can save your skin in case a thief, the government, or most commonly the insurance agencies, fail you.
1. Opening Your Own Bank Account
If you, for some oddball reason, do not have your own bank account, then this is a perfect place for you to start. Not only is keeping your bank account a way for you to get paid and keep records of your money, but it is also a way for you to keep track of it, as well as deposit and take out money if need be.
To add on to this, it blows you to make donations, receive and send out checks, as well as sign up for many legal things. On top of all of the things already listed, perhaps the most important factor of all, it allows for you to register yourself for a checking card, debit, or credit card.
2. Securing Deposits
If you run or are planning on running any kind service-based business, then you need to consider getting into the habit of making your customers store insurance fees before doling out your services. If you are curious as to why this is, it allows you to ensure that they are going to pay you, as their money, reputation, or property is on the line. It is also somewhat of a legal ‘safe pass’ in case something goes awry on the customer’s end.
3. Debt Collection
This reason is critical in all business, especially high risk / high potential gain markets, and even more relevant is when it is considered for service-based businesses. It does not matter how ‘kind’ you are as a business owner when you extend crediting privileges to your customers. If anything goes wrong, either with employees, customers, insurance fees, taxes, tax returns, refunds, or whatever the case may be, it is important to have some form of debt collection system.
4. Final Thoughts
It is easy to forget that these kinds of things are so inherently vital in the business world but is always true and always has been true that money is at the center of the community, as well as the government (for better or worse) and the people who run it. If these finances and funds are not properly managed or kept it check, it can be both detrimental to society and to every individual that operates its businesses and works in its factories.