5 Tips on Managing Financial Laying Businesses that You Should Know
Managing a laying hen business so that it can develop properly does require focus and discipline, especially in terms of financial management. As with other businesses, the laying hens business will also develop if it has sound financial statements that can be seen at any time in a transparent manner. To facilitate the financial management of laying hens, it should start from small to large things. Then how to manage financial laying hens business properly? Check out the tips below.
Record All Capital
The initial capital to run a laying hen business or commonly referred to as domestic chicken eggs are not small. Initial capital is a land for the establishment of chicken coops, chicken seeds, feed, and vitamins needed. Although this initial capital is already available, you as a business person must record all the capital because it is needed to calculate profit and loss. In addition to knowing the results, you also need to replace all the initial capital from the profits so that no capital comes from your personal money.
Fixed Operating Costs
You need to know how much it will keep operating costs to run this farm every month. Fixed costs consist of feed costs, vitamin costs, vaccinations, employee salaries, electricity, water, and everything directly related to animal husbandry and are always needed. By knowing these costs, you can determine the selling price of eggs from the production so that you are more likely to benefit. If you already get a profit, set aside a portion of the profit as a fixed operational fee every month. Thus if there is a loss you can still run a business.
Prepare an Emergency Fund
Every business has a risk of loss, both large and small. You as the owner and business person must have reserve funds for emergency expenses. This preparation is also included in the tips on managing finances so that your laying hens business remains safe under any circumstances. This emergency fund can be used if it turns out a disaster has caused a loss. Even if your business always runs smoothly, you can add this emergency fund to the capital or into the company’s cash.
Pay Bills On Time
If your business has a debt that needs to be paid periodically, try to pay it on time before the due date. Besides being a good debtor, paying on time will make your business financial management also run well.
Avoid paying bills that are overdue or late, due to late payment of a debt. In addition to your status as a debtor will be bad, you also have to be prepared to bear fines which will certainly burden the company even more money.
Implement Accounting Records
In addition to the 4 simple tips on managing finances above, you also need to apply accounting recording tips that require perseverance and a lot of attention in managing the finances of your laying hen business.
Accounting records will be very useful in financial reporting because they can show the use of all funds in accordance with their respective goals. In addition, with accounting records, you will also find out if there are financial problems that occur during your laying hen business process.
To make it easier for you to do accounting records from your laying hens business, you can use the help of Journal online accounting software.