It is not uncommon to arrive in the middle of the month, look at the current account balance, be scared to see the money flew and have no idea how you spent what you received. Another common scenario is to have the impression that you spend a lot on superfluous, wastes money on a day to day basis and there is not much left to accomplish important goals, such as a trip or a course. This is because the various expenditures of everyday life – ranging from essential and larger expenses, such as rent and supermarket to small purchases, such as after-work snacks and movie tickets – are considerable. Lack of control eventually brings financial waste, since you do not know where you can cut or where you can economize. The same situation happens in the business scenario: lack of control hampers profit and business growth, with expenses that could easily be cut and poor cash flow control becoming a problem.
To have healthy finances, betting on financial control is accurate. By managing expenses and revenues, you know where the money is going, in what areas you can cut costs, and in what categories you can save money. In this post, you will learn everything you need to know to do your financial control:
How to Do a Personal Financial Control
Personal financial control is a way to organize all your income and expenses, taking into consideration the income you receive and everything you spend. It is a task that may seem simple, but it is essential for financial balance. Many people have no idea how much they actually earn, how much they spend, and especially what they spend every month. With this, they often find themselves without money in the account and do not understand why. To have financial independence and security that will not go red, taking personal financial control regularly is important. So you know exactly how the money is being spent and you can put your foot on the brake if necessary, cutting out superfluous to get the money you need to save and meet your financial goals, such as changing your cell phone or going on a trip. Here’s how to do personal financial control:
Record everything you earn and what you spend
An effective personal financial control goes by recording everything that comes in and what goes out of your pocket. That way, you know exactly how much you earn and how much you spend, and if you can, you can balance your finances by cutting expenses. In order to function, it is important that the control be done regularly, preferably weekly. Begin by separating all the entries, which are the recipes you receive (salary, extra income, benefits, etc.). Next, list the expenses, beginning with the fixed ones (monthly tuition, rent, electricity bill etc.) and then the variables (purchases, bars and restaurants, etc.). Write down all expenses, however small.
By analyzing everything you earn and what you spend, you can set priorities and devise a plan of action to save more on a day-to-day basis. See what is essential and what is not in your budget. Do you really need to dine out every week or can you replace the outlet for a meal at home? Why not switch to the weekend movie theater for a free exhibition? Can the car be changed by public transport? This way, you spend your money more consciously and reduce the risk of getting into debt.
Set short-term goals
The money left over from day-to-day spending cuts can be invested in your financial goals, from creating an emergency reserve to a weekend trip or buying an item such as a dress or cell phone. By setting short-term goals, you motivate yourself to keep in the habit of financial control because you see that it allows you to fulfill your little desires.
Use credit card wisely
In addition to cutting unnecessary expenses and learning to save to achieve your goals, knowing how to use a credit card is an important part of personal financial control. Use the plastic money wisely, avoiding long installments, which will jeopardize your income in the following months and control all the expenses you incur in it.
Planning is an essential part of personal financial control. Set spending goals for each category of your personal budget and stay true to them. Essential expenses such as rent, food and transportation must always be a priority. Lifestyle-related expenses, such as leisure, personal care and purchases, should not exceed 35% of net income. Take control regularly to confirm that you are keeping to what was planned and, if you extrapolate in some category, try to cut costs in another to balance and not harm your budget.
How to do a Business Financial Control
Just as with individuals, companies also need to invest in money management to keep finances always healthy and not run the risk of having to constantly resort to loans to get out of the red. In this sense, corporate financial control is essential: it is through you that you will analyze whether the planning done for the business is being executed the way it should and what should be done to balance the financial situation if something goes astray initially. Recording all transactions and cash flow, which are all inputs and outputs of the company during a specific period, should be the starting point for corporate financial control. Learn how to do:
Record all drives
Correct recording of corporate financial transactions is a basic step, but not always carried out by companies. Start with the fixed business accounts that are usually centralized in the financial manager or in automatic debit in the bank. Then also record the financial expenses made by the team. To facilitate this control, it may be a good idea to use a corporate card with a fixed limit or establish a refund policy with the presentation of an invoice. Do not leave any moving out.
Control cash flow
With all corporate transactions properly registered, it is important to make frequent, preferably daily, checks on cash flow, with a record of accounts payable, receivable, banking and inventory control. With this habit, you can conduct a financial survey for a certain period and thus recognize future needs, be it for loans or applications, in addition to paying all bills on time.
See where you can cut expenses
If your cash flow is not balanced, cutting some expenses may be accurate. Start with small daily waste and identify potential savings. Renegotiating telephony and internet packages, using financial management software, and encouraging the reduction of disposable cups are some ways to cut spending on a day-to-day basis without directly impacting business operations.
Define the income statement
Charting a profit statement is important so that you can know what the net profit is, regardless of whether it is received or paid. To get to it, plot cost of goods, sales, and fixed and variable expenses. With defined net income, the contribution margin is the difference between total revenue (sales) and variable costs and expenses.
Use business financial control in favor of the business
The main objective of corporate financial control is to ensure that revenues exceed business expenses, that cash flow remains balanced and that there is enough left over to invest in the company’s growth. For this to happen, it is important to take some precautions, as you prefer to purchase on a long term basis, since your products are not always marketed in cash. Buying with a longer term than the sale is also important to achieve financial equilibrium more easily. It is still essential to dispose of stationary goods in the inventory and, if the expenses exceed the revenues, seek to buy in less quantity to have fewer items stocked. Also, check the payment deadlines to ensure that your entries will happen on time.
How to use a financial control worksheet?
Some tools are essential allies to manage money, be it personal or company. One is the financial control worksheet. With her help, it is possible to easily record all income and expenses, see where the greatest expenses are, and identify potential savings in everyday life. Understand the importance of a financial control worksheet, see how to build one, and learn how to keep it updated on a day-to-day basis:
Why is the financial control worksheet important?
The financial control worksheet is one of the tools that allows you to enter all your daily expenses and payments in addition to your incomes. Unlike the old expense notebook, in the spreadsheet the sum is done automatically and the values are instantly subtracted from your income. At each expense entered, a new total value. With the help of the file, you have the possibility to observe in a more precise way how the money is being spent and if there is excess spending in a certain area. In addition, the tool gives an overview of how much you spent more or less on the month compared to the previous one.
How to assemble a spreadsheet
The first step to putting together a financial control worksheet is to write down your monthly expenses. Do not leave any expenses out, even if it is small, like a coffee or a bus ticket. Create a routine of recording the expenses in the hour or shortly after they happen so as not to risk leaving something out. When it comes to creating the financial control worksheet, it’s important to make sure you’ve included all the categories for your spending and revenue. Portion of the car, real estate financing, school tuition. All of the expense items that are part of your routine should be in the document as well as financial priorities. If you have debts, put in the worksheet the amount that will be used to pay them off. If not, plan some of the income to achieve some goal, such as buying a cell phone or a weekend trip. After you’ve structured your worksheet, start the actual creation of the file. You can use Excel, the Microsoft Office spreadsheet program, or Google Drive with the Google Sheets feature. List all revenue categories and then expenses in the first column. In the next column you should note the respective values and thus find out exactly how much you spend and how much you earn.
Ready options for financial control worksheets
Creating your own financial control worksheet can be a good option because you can make a document that is already adapted to your lifestyle, with expenses that you actually make. However, in the absence of time, there are ready-made spreadsheets that can be easily downloaded. Idec has created a spreadsheet tailored to those who are starting to do financial control. Simple and easy to use, it is ideal for those who do not need many features and formulas. Investors can better adapt to the BM & F Bovespa worksheet, which has an area reserved for this purpose.
Tips to keep your financial control worksheet up to date
To make the most of your financial control sheet and keep it current, and keep track of all expenses, watch your financial behavior during the month. Do you save or always spend more than you earn? What is your Achilles heel? Small expenses, impulse purchases …? When you understand their behavior, they can change their habits and take control of their own finances. Planning your spending is also essential. Even before the start of the month, set how much you can spend within each budget category. Start with the essential and fixed expenses and then go to the variable expenses. It is also interesting to reserve values for specific purchases, such as a wedding present, a birthday trip or a tuition fee. With the spreadsheet, it is easier to set goals and reserves to achieve certain goals.
Is it possible to do financial control online?
Spreadsheets are widely used tools for financial control. However, there is an even more practical option: financial control from online tools. Financial control online can be done through a website that is already built with several functionalities for the effective management of your money. With this, you do not have to worry about learning, creating and maintaining a manual financial control worksheet. See the key features and benefits of online financial control:
Data storage security
By choosing to do financial control online you do not run the risk of losing your data in the event of a problem with your computer or your spreadsheet. Just update your control of any equipment with internet access.
Automatic import of revenues and expenses directly from the bank
One of the great advantages that some online financial control tools offer is that there is no need to write down spend-to-spend money management. As they are automated, revenues and expenses are imported automatically from the bank and credit card.
Organization and categorization of launches
Online financial control categorizes your income and expenses. This feature makes life easier for those who do not have the time, since you only have to access the tool to quickly see the budget areas where the biggest expenses are. In some online financial control tools, this categorization can be done automatically.
Planning and tracking online how much you can spend
Because bank transactions are updated automatically, with financial control online you have instant access to your current account balance. How tools can still offer the planning feature – where you can set spending goals for each category of your personal budget – in one click you can check if you spent more than you owed or still have what you need to spend in each area of your life .
Many online financial controllers can also be accessed through smartphone applications. This is an essential resource for those who do not have the time to lose, since it is possible to manage finances wherever they are, directly from the cell phone.
Choose your online financial manager
So in the case of spreadsheets, there are several options for online financial manager. When it comes to choosing, it’s important to analyze whether the features offered are best suited for your lifestyle and the way you organize your finances. There are options with more business-oriented features, while others focus on the individual. Check out the options and choose the one that is right for you.
It is the only free and automatic online financial manager. With the Palliser family, your finances are organized in less than two minutes. Ideal option for those who do not have time to lose, it is still simple to use. Simply enter the internet banking data and the tool lists all financial transactions made in the current account and credit card, categorizing them automatically. This makes it much easier to know where you need to cut costs and where there is potential for savings. Intuitive, the tool allows you to manage your money in one place. Another interesting feature is Planning, which allows you to set goals for each budget category and automatically track how much you still have to spend in each area. The Chart feature quickly shows you which categories are your biggest expenses in the month.
Online program that can be used as a personal or business financial manager, My Money allows you to post all of your expenses and income on a daily basis. With a feature that helps you remember dates of payment and receipt of income through email, My Money can still be accessed by mobile. Other resources that are particularly interesting for companies are cost and profit centers and payers and favored ones.
Aimed at self-employed professionals, liberals, MEIs and micro-enterprises, Zero Paper is a tailor-made financial manager for anyone who wants to organize business finances without too much work. With the Accounts Payable and Receivables feature, you can access the company’s entire cash flow. The tool also allows the extraction of reports to be done in a practical and fast, as well as the issuance of bank receipts of receipts. You can register more than one user to use the tool.
Financial Manager of Banco do Brasil
Returning to companies, Banco do Brasil’s financial manager allows the company to transfer amounts between accounts, make payments, issue DOC and TEC, make financial applications and send the Annual Gross Invoicing ratio, all online. Access is done by means of the key that is provided by the relationship agency. The manager offers different levels of access, according to the users permission.
Charts and reports are some of the features of My Savings. The site also has the Dream Manager feature, which shows how much needs to be saved per month to accomplish a goal, such as a trip. The manager is not automatic. Although online, all entries and exits must be logged.
Adopting financial control is the best way to achieve from managing your money effectively and knowing exactly how much you are spending and how spending. By adopting the practice, you know exactly where you can cut spending on a day-to-day basis and you can save money to achieve your goals. With financial control, the everyday economy becomes a reality and your monthly income can be used in the best way possible: in the fulfillment of your dreams!