When it comes to maximizing growth, managing the budget, and accurately tracking your business, accounting is key to success. Though it seems like a dull task, it’s better to be proactive about it instead of leaving it until the last minute. To help you better organize your business and be one step ahead of the competition, we have provided you with a list of five, easy tips on how to keep your finances in order.
1. Separate Your Expenses
Separating your personal finances from your business ones can make a huge difference when it comes to keeping track of your finances. This categorization process will save you from hours of work and make it easier for you to oversee deductible expenses. While some accounting applications can assist you with handling accounting for crossover expenses, accounting is far less complicated if the expenses are handled independently or by an accounting firm.
2. Hire an Accountant
While being your own accountant may feel more cost effective, the knowledge of a professional is worth paying for. An accountant can find more deductions, keep you penalty free, and save you time and money. If cost is still a concern, we recommend that you organize your records as much as possible before handing them to an accountant, so you have fewer billable hours to pay.
3. Schedule Time to Organize Your Finances
Schedule time every week to review and organize your finances. By allotting 30 minutes of uninterrupted time per week to accounting, you’ll have more business insights and have everything organized by tax season.
4. Keep Your Staff in Mind
Whether your business is fully staffed or you’re the only one on the payroll, make sure to track the costs of wages, overtime, benefits and other associated labor costs. This can help you determine if you are under or overspending, as well as give you important insights into your business that could assist with future decision-making.
5. Don’t Forget About Invoices
Make sure that you are tracking your invoices and payments! It’s important that you record when you receive a payment, any past due dates, and which customers you’ve had difficulties collecting from. This will enable you to make decisions on which customers will be the best to do business with in the future.
By following these tips, you’ll become more accustomed to simple accounting practices that will set your business on the path to success!