Tips for a healthy financial success!

For financial success you require to keep profitability, liquidity, and solvency in a good shape. Regular review is also required to keep financial health in good shape!

 ‘Always think how you can accomplish things economically.’ Warren buffet

Following are a few tips that may help you to achieve your financial goals:

1. Allot a budget for each project. Check your expenses whether they remain within your defined budget.

2. Maintaining records, invoices and collection of cash is as important as the performance of services.

3. Maintain good balance between profitability and liquidity to assure enough money to keep the solvency (the ability to meet obligations as they come due) of the firm intact.

4. Prepare cash flow plan for short–term requirement and long–term growth.

5. Buy good accounting software (recommended by consultants) and maintain accounts regularly.

6. Review your accounts periodically; spare at least a day per month to understand the status of the firm.

7. Follow the principle of “Earn-Save-Spend” and not “Earn-Spend-Save”.

8. Borrow money if you have to but try to clear the liability at your earliest with systematic approach.

9. Earn extra money by investment and value addition in your services etc.

10. Educate yourself; you have to have knowledge of basic accounting.

11.Eat well, sleep well, exercise well and don’t forget to drink lots of water. Your health will define your company’s health.

Enjoying finance management is the key to successful architectural practice. If you wish, you can be equally creative as your designs. The firm finance management requires nutrition (accounting), exercise (regular reviewing) and meditation (creativity) like body to remain healthy, wealthy and happy.

Do you agree to keep your financial healthy fit? So, don’t forget to 

‘Say yes to Architectural management’

Next: Roles and Responsibilities of an Architect