Golden secrets of financial management for ‎small projects

Good planning is the hallmark of success. The financial management of small projects is one of the elements that we must pay great attention to, especially since financial transactions are the first controller in managing the company's business. Therefore, we need a regulator for the various financial operations, aiming to put the company on the path to achieving its goals. 

What is the financial management of small projects?‎

Financial management is concerned with conducting business, controlling and regulating financial operations, and monitoring the movement of incoming and outgoing funds.

It also guarantees the company’s rights and pays all the money owed on time, ensuring that the company is on a steady pace towards achieving its goals.  

Small business financial management departments

The financial management of small projects includes a group of departments with different tasks serving the institution's objectives. These departments are: 

‎1- Secretarial Department

The department is concerned with receiving exchange receipts from the Financial ‎Department and tracking them until their final stages. It also records the financial ‎department's transactions, keeps the department's export information, and copies ‎various documents.

‎2- Audit department

The department monitors the company's financial transactions to know exports and ‎imports and manages its internal expenses, such as salaries, contracts, and ‎insurance.‎ The financial management of small projects often relies on accounting and legal ‎consulting firms with significant experience and professionalism in managing ‎financial burdens, such as ECPA company.‎

‎3- Department of the public treasury

The department is responsible for depositing financial returns to the company's ‎account, disbursing various financial dues, such as supplies and tax obligations, and ‎following up on the company's financial records and reports.‎

The importance of financial management for small businesses

Financial management is an essential cornerstone of the company’s success. It maintains the institution’s existence for long periods, especially if it is newly established. We can summarize the importance of financial management for small projects in six main points, as follows:

1- Financial Planning

Good financial planning helps to achieve the company’s goals. It enables the company’s owner to make the right decision in many financial situations according to a set of studied calculations, ensuring the company’s survival as a strong competitor in the long run.

2- Financial risk management

Small business financial management makes it easy to anticipate potential financial problems. It provides various analytical methods for estimating the size of financial losses, limiting their effects, trying to overcome them, increasing profits, and improving financial conditions.

3- Monitoring the financial flow

Expenses are usually greater than imports in small businesses. So, the financial management of small projects helps in accurately monitoring the movement of financial transactions, determining their impact on increasing the volume of project work, and accurately analyzing the financial situation; To avoid financial debts.

4- Financial stability and economic growth

The stability of the financial situation refers to the company’s tremendous economic growth, as it helps to expand the company’s business volume, increase financial gains and achieve the best possible commercial returns.

5- Tax planning

Tax planning is of great importance for small businesses. It protects companies from the risk of tax penalties, ensures the obligation to pay various taxes, and helps use legal loopholes to take advantage of tax exemptions.

6- Making financial decisions

The financial management of small projects helps in making the appropriate decision regarding the financial obligations of the project, such as financing decisions and issuing bonds, depending on the analysis of the company’s financial position and the correctness of the company’s position in many financial transactions, which is a strong point in facing the project’s financial crises.

Tips for successful small business financial management

Success and continuity are the most important goals of small projects, which will only be achieved with the success of financial management.

Here are some tips to ensure you reach the highest degree of financial management success ever:

  1. Periodically review the financial affairs of the project.
  2. Create a fund for emergency expenses.
  3. Create organizational structures to organize the company’s business and distribute tasks.
  4. Determine the best financing option for the company.
  5. Rely on accounting and legal consultancy firms in financial management, such as ECPA.

The financial management services for small projects from ‎ECPA ‎

ECPA is one of the leading accounting and legal consultancy firms. The company provides several different services that serve all institutions. To provide the most excellent support to its clients' companies, ECPA delivers the best financial services that maximize corporate profits and achieve financial stability: 

‎1- E-invoice service

It is an advanced electronic system that designs financial invoices for customers, ‎coordinates with the Tax Authority, and collects and sends dues and invoices.‎

‎2- General Accounts Service

The service gives the ability to determine the company’s financial position monthly ‎or annually as quickly as possible, manage various financial operations, make some ‎related decisions, such as opening new branches or obtaining a loan, and analyze ‎the company’s financial position.‎

‎3- Document management service

This service manages the files and documents of the company and performs many ‎activities, such as electronic registering, planning, sending, and following up. One of ‎its most essential features is keeping important administrative and financial files and ‎facilitating access to the required information and data. ‎

‎4- Financial budgeting service

Preparing the budget is one of the tasks of financial management, which aims to ‎know the size of the profits achieved, and the losses incurred by the company.‎ ECPA facilitated this task through the planning financial budgeting service, which ‎carefully studies the company's comprehensive resources and determines the best ‎ways to exploit them to achieve financial gains for the company and improve its ‎financial position.‎

‎5- Bookkeeping service

Within the financial management services for small businesses, ECPA provides a ‎group of qualified experts; To meet clients' various needs, such as preparing the ‎company's accounting and financial records and providing financial statements ‎related to employee wages, social insurance, etc.‎

FAQs About Small Business Financial Management

What is the purpose of financial management?‎

It aims to regulate financial transactions of all kinds within the company; To expand ‎its business and increase its profits.‎

What makes a business successful?‎

Besides adequately managing the company's transactions financially, defining ‎project objectives, good planning, and collaboration are the foundations of business ‎success.‎

What are the causes of business failure?‎

Wrong planning of the project and the inability to define its goal and meet its basic ‎needs and resources.‎

What types of financing do small business owners usually use?‎

Non-bank financial institutions, such as associations, financial leasing companies, ‎and banks.‎

What are the five sources of funding?‎

‎ ‎ • the family.‎ • investors.‎ • Microfinance.‎ • Business Incubators.‎ • banks.‎

In summary, the financial management of small projects is the main factor in the company’s success. It controls all financial transactions and serves the company’s interests, putting it on the right path and improving its financial and administrative position.