Keeping business finances separate from your personal finances is essential. With it being easier to keep records, help with organisation and reduce time spent on the task, if you haven’t got separate accounts, do it now.
Review Financials Monthly
At the end of each month, print reports to get an overview of month. Print a transaction report to compare to your bank statement to make sure you’ve accounted for all transactions. Print an accounts receivable report so you can send an invoice to clients who owe you money. Run an income and expense report to make sure you’re operating in the black. Evaluate expenses to determine if they were necessary and provided a financial return.
Here are a few tips:
• Create a bookkeeping process that includes complete weekly updates of your accounting information
• Use accounting software that’s best suited to your operation’s needs
• Set up a chart of accounts specific to your operation – and apply them consistently
• Review your up-to-date information as you make financial decisions