Running their own business is fun and a dream for many people. However, when running our own business, there are times when we experience a number of challenges. One of them is the challenge of managing business finances, especially when managing cash flow.
Not a few people mix business finances with personal finances. Some other people use their business money to meet household needs. If not managed properly, expenses and sustainability of business may not go so well.
Putri Dwiandari, the owner of I-AM-JAGO Public Speaking Center, admits that managing household finances and business finances at the same time is not easy. Therefore, Putri always tries to manage cash flow to stay healthy.
Managing Business and Personal Finances with the Jago Pocket
At the beginning of setting up her public speaking center, Putri and her two friends used personal capital. Over time, the business grew so that it was no longer possible for the three of them to handle it on their own. They needed more teaching staff and employees.
So that it is clear what expenses are needed to run the business, according to Putri, separating personal and business finances is mandatory.
“Accounts really need to be separated. Don't mix personal and business finances in one account. It’s very risky. Moreover, my business also has many needs, such as salaries, bonuses and THR for employees. Not to mention the expenses for various bills," Putri said.
Putri emphasized the importance of separating personal and business accounts to be able to trace transaction history when checking financial transactions. The business account must be organized to make it easy and quick when tracking business money. There shouldn’t be any personal transactions in the business accounts. Business cash flow will be disrupted if the money is used for personal needs, especially if it is not just 1 or 2 times but many times.
But, it is undeniable, we can be overwhelmed taking care of many accounts. Putri also agreed to this. "Having just 1 account is complicated, let alone 2. Not to mention if we have more than 1 business. We must have many bank accounts."
However, since knowing about Jago, Putri can let go of the headache of managing multiple accounts as she has to separate business and personal finances.
"Back then, I was interested in using Jago because of the Pocket feature. I can create multiple Pockets to separate each need and each Pocket has its own account number. Even though you have many accounts, monitoring and managing them isn't complicated because everything is in one application,” Putri shared her experience using Jago.
Apart from that, together with Jago, Putri can also manage money together with other people to manage the company's petty cash and manage business cash flow, for example.
“I created Shared Pockets for some company needs. The Shared Pocket makes it easier for me to collaborate with other people to manage business finances. Each member has access to see the use of money in the Shared Pocket."
Putri also stressed the importance of having cash flow that is always healthy or positive. In other words, expenses are never greater than income. According to Putri, mompreneurs like herself also need to have good bookkeeping to know the sales projection. How many sales must be generated and what are the costs incurred for management.
“One way to find out how healthy our cash flow is is to check the transaction history. From the transaction history, we can see the activity of money going in and out in running the business."
Unfortunately, many business owners do not do this because they are reluctant to go to the bank or queue at the teller just to print a passbook.
“Indeed, sometimes we feel lazy to stop by the bank. That's why I use Jago too because it's practical. We can immediately download the e-Statement as a substitute for a passbook. Jago's e-Statement is detailed and records every transaction clearly and neatly. Analyzing spending is made easier by looking directly at the e-Statement," said Putri.
Jagoans, do you want to be like Putri, who is now jago at managing business and personal finances? Use the Jago application and its various features that allow you to save and spend the way you want.
The Jago application can be downloaded here for those who don't have it yet.
