Being your own boss has lots of benefits. But owning and managing a business is hard work. There are lots of balls to juggle, lots of different hats to wear and lots of potential headaches. Here are a few tips to help keep your business finances organized and minimize at least one of those headaches.
- Outsource: Bringing in business or growth opportunities are your top priorities. Every hour you spend on business finances and organization of your financial records is an hour that is not spent on your top priorities. Outsourcing the financial aspects of your organization will not only free up your time to work on growing, but it will also ensure your financial records are always in order.
- Bank Accounts: Set up a separate account for your business or organization. Keeping business expenses separate from personal expenses eliminates confusion and makes record keeping much easier.
- Keep Accurate Files for Necessary Documents: It’s your choice whether you keep paper files, digital files or a combination of both, but there are important documents to keep track of. Those include:
o Payroll records
o Income and expense receipts
o Tax records
o Insurance documents
o Professional certifications
o Lease or mortgage records
o Bank statements, including accounts and business lines of credit
o Tax exempt certificates if they apply
o Permits and licenses
- Accounting System: An accounting software system is a must have. Not only will it automate your accounting processes and save you valuable time, but it will also help keep all your income and expenses organized.
- Take the Time to Stay Organized: Discipline yourself to keep on top of your financial records. It not only helps keep your records properly organized but it eliminates guess work by taking care of your records when everything is fresh in your mind.
- Don’t Pay Cash: This may sound obvious but paying by cash instead of by company check or credit card is a disaster waiting to happen. Paper trails can get lost when paying by cash. Paying by a company check or credit card ensures the proper accounting paper trail and reduces the potential for headaches.
We hope these tips have been helpful and will help focus your attention on growing your organization while keeping your business finances well organized.