There is more to entrepreneurship than just launching a business. In fact, to set up a business and successfully manage is not as easy as most people think.
As a small business owner, business finance is a key aspect of the business you can not afford to joke with. This is why having healthy business finance is the ultimate aim of every business owner.
Tracking business expenses can be a full-time job. If there’s no room in the budget for a bookkeeper, the task falls onto the business owner. However, don’t allow business expenses to get the best of you! Below are the tips you need to keep it all under control.
#1]. Schedule it in
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When it is hard to find any extra time in the day, it is important to put bookkeeping time on the schedule. Depending on the size of the business, this should be scheduled as often as every day or as far apart as weekly.
Perhaps it is on the schedule every day between 4:30-5 pm, ensuring that everything is written down before leaving for the day. If business owners take the time to work it into their schedule, Financial Statement Preparation becomes more manageable.
#2]. Use apps
Today, there are so many great financial apps out there that can help you become a better and smarter money manager. Some of these apps even let you use your smartphone to scan and record receipts, pay bills, and update spreadsheets.
Also, great apps such as Quickbooks or other alternatives can really help with your small business accounting. If there is a specific part of tracking expenses that just seems totally overwhelming, chances are, there’s an app to make it easier. With the right apps, there is so much you can do to improve your money management skills.
#3]. Get organized
Nothing sabotages business tracking more than a disorganized office. If the IRS ever audits the business, documents need to be found in an orderly condition. If paperwork and receipts are constantly being lost, there will be nothing to back up reported business claims. A good organizational system will separate expenses by year and include an archival for the previous seven years.
#4]. Save your receipts
Part of getting organized is saving receipts. Every time something is purchased or expensed for the business, there needs to be proof. Proof comes in the form of receipts and signed invoices. Receipts are best handled if sorted by the month.
#5]. Separate personal and business funds
A huge no-no for tracking business expenses is mixing personal and business accounts. If the accounts are mixed, it takes way more time to sort out. To help with this problem, it is vital to have a business checking account with its own debit card. That way if business and personal items are bought, separate cards can be used.
#6]. Automate
Nowadays, business finance is one of the key areas where automation tools can help your business grow. As a business owner, automation makes life easy and sometimes feels like it makes the world go around.
Nothing feels better than logging into a program to see all of the transactions automatically uploaded. Sometimes you can even program the automation to send expenses to different categories. Other times the uploaded expenses stay in a queue waiting to be categorized.
#7]. Don’t fall behind
Every year, tons of business owners realize that they have completely neglected their bookkeeping for the year. Tax season is nearing and they need help. This help is often extremely expensive and unnecessary.
Save on this unnecessary expense by finding someone to keep you accountable. Have monthly checks with a different person. If you have fallen behind, the pressure of the meeting will encourage catching up.
#8]. Monitor frequently
Once a system and a schedule are worked out, it is important to monitor the expenses frequently. Every day checks ensure that nothing falls through the cracks. By following these tips, it makes the business expenses a priority.
Bookkeeping doesn’t need to be tedious, it just needs to have a plan. By making sure to schedule in time, stay on top of the expenses, and monitoring frequently, you will track expenses with ease.
