Your daily activities as a financial inclusion agent involve handling money, either yours or your customers. Typically, you fund your purse, receive and give out payments, help customers withdraw cash, transfer funds, pay bills, buy airtime and even sell your other goods. At the end of the day, you draw up your balance and reconcile transactions.
Like other businesses, agency banking needs effective financial management to grow and succeed. You want to move from having one location to two or twenty-two? A good way to achieve this is to manage and monitor your finances so that you always have enough cash to keep the business going.
This can sound confusing or even difficult but we can assure you that it is not. Here are some simple steps to take every day to ensure the effective management of your finances.
Taking bills and making payment – This covers how you receive payment from your customers and how you pay for things needed to run your businesses, For example, is your business cash-based or do customers prefer to transfer? Do you have a business account or does everything go to your personal account? How do you pay for business necessities? Weekly, daily, monthly? Do you buy in bulk to save costs? These are some things to consider when planning your finances as it can help track your funds, understand where they are or go and create a good budget.
Monitor your cash flow – Cash flow is how much you have made at the time of transaction and the cash balance at the end of a day, week or month. To properly monitor your cash flow, put all income and expenses on a logbook the day they occur. If you’re not sure on how to keep your books, you can search for tips and simple steps on the internet, also create a strict business record keeping process from your staff .
Create a quarterly profit and loss reports – Your profit and loss reports are necessary tools for growing your business. Every PayCentre agent needs to create and review their profit and loss reports quarterly. To determine your profit and loss, compare your income against the expenses incurred in running your business. The profit and loss are necessary tools to help you make a business decision as a business owner.
Summation of Income – Summation of Expenses = Profit and Loss
Save as much as you can – A very good way to grow your business is by cultivating a saving habit. Try to save daily or weekly as an agent especially as you are always with funds; it is very easy to lose track of how your money is spent.
There is no particular rule to how much you should save, but it is advisable to save at least 10 -20% of your daily, weekly or monthly income. The savings can be used to open new locations and employ more staff so that the business can run more effectively. The money spent running your business should not eat into all your profit. You can create saving goals and targets to achieve specific milestones. Be sure to set some savings aside for emergencies as well
In conclusion, running a business requires constant learning so never stop learning and improving yourself and business. By understanding basic skills like simple accounting tasks or creating financial reports, you can build stable finance required in running a successful business. Also, being aware of how everything in the country affects your business and staying prepared to adapt or adjust can help you become a better finance manager.
Are you a small business owner looking to earn more and get multiple sources of income? Is there a need for financial facilities in your community or neighbourhood? Why don’t you sign up to become a PayCentre Agent today and start making money every day!
Did you find this article helpful? Share with your friends on social media and leave us a comment!