Managing finances is crucial for small businesses, but it can be overwhelming without the right tools and resources. In this article, Brett Sussman, VP of American Express Business Blueprint, shares insights on how small business owners can track important financial metrics, build good credit, balance growth and stability, and improve financial literacy.
Key Financial Metrics to Track for Better Decision Making
Sussman notes that tracking cash flow is essential to managing finances effectively. According to an internal American Express study, 67% of small businesses consider cash flow visibility the most desired banking service. To help businesses analyze cash flow, American Express has developed Business Blueprint, a suite of digital financial products that provide free cash flow insights.
The Role of Credit in Financial Management
Building and maintaining good credit is critical for small businesses. Sussman suggests various steps businesses can take to improve their credit, including managing credit utilization, maintaining a clean credit report, paying down balances, and resolving accounts in collection. American Express Business Line of Credit has helped many small businesses not only survive difficult times but grow.
Balancing Growth and Stability
Small business owners need to balance the need for growth and expansion with the need to maintain financial stability and avoid unnecessary debt. Sussman emphasizes the importance of education and organization to ensure a business’s financial health. American Express Business Blueprint offers streamlined management and tool consolidation, providing insights that can directly impact growth.
Tools and Resources for Financial Management
American Express Business Blueprint offers small business owners free cash flow insights and 24/7 access to a suite of digital financial products. Business Blueprint was designed for small businesses that do not have access to a CFO like larger companies. This means that owners can spend less time managing their cash flow and more time doing what they love.
Addressing Misconceptions about Financial Literacy
Small business owners often think that the only way to gain financial literacy skills is through formal education. Sussman encourages business owners to access online resources such as articles and blog posts to improve their financial literacy. There are many educational tools available to help small business owners develop their financial management skills.
Small business owners face unique challenges in managing their finances. However, with the right tools and resources, financial management can become more manageable. American Express Business Blueprint offers small businesses free cash flow insights, access to digital financial products, and tools to help them make better financial decisions. By improving financial literacy and management skills, small business owners can achieve their growth objectives and ensure long-term financial stability.
