Running a small or medium-sized business (SME) often comes with the challenge of keeping expenses in check while ensuring growth and profitability. Without a solid plan for keeping business expenses under control, it's easy to fall into financial strain.
The good news is that there are strategies and tools available to aid entrepreneurs in managing their finances. This article will give useful tips for dealing with business expenses and introduce financial solutions to simplify expense management.
1. Keep Track of Your Cash Flow
Successful business management hinges on the most fundamental financial principles: cash flow. All businesses have money going in and out, and you must have a clear understanding of that with your company. By tracking cash flow regularly, you can avoid overspending and ensure your business is financially stable.
With the right tools, you can better assess how much you’re spending on operational costs and where you can save. These solutions can make this easier by providing real-time insights into your finances. That is especially important if you plan to take out a business loan in the Philippines, as effective cash management can help you maximize growth opportunities while avoiding unnecessary financial risks.
You can track expenses, manage transactions, and stay organized using Maya's intuitive platform. That means more control over your financial situation and fewer surprises when it comes to expenses.
2. Leverage Digital Solutions for Financial Management
Managing your business finances manually can take a lot of time and result in errors. However, with the rise of online business banking solutions, many entrepreneurs find it easier to manage their expenses digitally. Modern business banking solutions offer a fully digital way for business owners to handle banking transactions seamlessly.
Maya Business Deposit, for example, lets you manage payments, conduct fund transfers, and even monitor your deposits through a simple dashboard. Features such as free transactions via InstaPay and PESONet eliminate the need to pay expensive transaction fees, providing more room for your business to grow. Additionally, with its 2.5% annual interest rate, Maya Business Deposit ensures your business funds work harder for you than if you were to keep your funds in a traditional bank account, thus helping you earn more while keeping your finances secure and accessible.
3. Keep Personal and Business Finances Separate
It might seem tempting to use your personal bank accounts for business transactions, especially in the early stages of your enterprise. However, this makes it confusing and difficult to track the movement of your personal and business funds. To avoid this, open a dedicated business account.
Using a business account like Maya Business Deposit ensures your business finances stay separate, giving you clearer insights into your company’s financial health. Consolidating your financial activities in one secure and dedicated business account also simplifies bookkeeping and tax filing, and it may also boost your credibility with clients and partners who may need to send or receive money from. After all, by having a proper bank account, you’re able to demonstrate that you are a professional business entity.
4. Access Flexible Loan Options When Needed
There will come a time when your business will need additional capital to expand, pay for unexpected expenses, or fund a new initiative. Regular bank loans often require lots of paperwork and take forever to get approved. They also come with high interest rates and rigid terms to boot that might not meet your needs as a growing company.
Modern business loan solutions from leading neobanks may be a much better alternative. Maya Flexi Loan, for example, offers a no-collateral loan of up to PHP 2 million, approved in just three months. This flexibility lets you manage your loan according to what your business needs.
Whether you're looking to pay for new equipment, hire additional staff, or cover a temporary cash-flow gap, a flexible business banking loan can help you move forward without the added financial strain.
5. Automate Your Financial Processes
Many businesses get into trouble because of bad bookkeeping practices, leading to poor financial decisions and maybe even trouble with the tax people. Consider automated accounting software to reduce the chance of errors and free up more time for running your business. Most accounting software can handle routine tasks like generating financial reports, managing invoices, and tracking expenses. With such a tool, you can make sure your business complies with tax regulations and make strategic financial moves based on real-time data.
6. Plan for Emergencies
Every business faces unexpected challenges. Whether it's an unexpected expense, a seasonal downturn, or a sudden operational need, having an emergency fund can help your business weather any storm. Building an emergency fund doesn’t have to be complicated. One simple way is to keep your surplus funds in a high-interest deposit account that can quickly grow your savings.
Setting aside a part of your monthly earnings helps you create a financial cushion that can be accessed in times of need. This helps your business continue to operate during challenging times without having to dip into non-operational funds or take out a high-interest loan.
7. Build Strong Relationships with Suppliers
Negotiating favorable terms with suppliers can help ease financial pressure, especially if you get their products and services all the time. Find suppliers who offer flexible payment terms or discounts for early payments. Not only will this help improve your cash flow, but it will also allow you to allocate more funds to other areas of your business.
Establishing a solid relationship also ensures timely fulfillment, which is a good thing for managing your deliverables.
Make the Most of Your Business Finances with Maya Business Solutions
Managing business expenses does not have to be the big problem that it is for many companies. With the right tools and financial solutions, you can keep your costs under control and ensure your business remains profitable.
Setting up a Maya Business account lets you open a Maya Business Deposit account and use it as your settlement account. With an industry-leading 2.5% per annum interest rate, you’ll earn PHP 25,000 in interest per year on a PHP 1 million deposit. Additionally, you can send money to your partners and suppliers for free via InstaPay and PESONet, keeping your expenses low and maximizing your savings.
The most interesting part is that signing up qualifies you for a no-collateral Maya Flexi Loan offer of up to PHP 2 million in just 3 months. That can come in handy when you need funding to scale your business. The more you use Maya as your primary processor for all wallet and card payments, the better the loan offer will be.
Sign up for Maya Business to access all-in-one banking solutions, including flexible loans and efficient payment management tools. You can save, earn, and borrow funds when you need them with the full range of Maya Business solutions. Take control of your business finances today!
