Organizing and keeping track of your business finances can seem like an overwhelming task but it is fundamental to good business practices and financial welfare. When you’re just starting out, there are so many things to keep track of. One of the first steps to starting a business should be getting a separate checking account and a business credit card. Despite being common advice it bears repeating because so frequently it is ignored until there is a confusion that needs to be sorted out. Start out the correct way from day one.
Track All of Your Expenses
From day one, track every single expense. Good tracking of expenses is about more than the obvious tax write off. It is one way to track how your business grows, manage your budget and put together financial statements. The great thing about technology is there are so many options to do this now and many apps and software that will easily interact between your smartphone and your computer software or online cloud-based sites. If you’re not the most tech-savvy person, expense tracking software or apps are a great way to start getting up to speed because many are user-friendly and fairly intuitive.
Use a Reliable & Standardized Bookkeeping System
Cash method or accrual method, you need to choose and then be consistent. If bookkeeping and numbers really aren’t your thing, this is a great time to call in the experts because this is one of the most time and skill intensive aspects of owning a business. There are many software options, like QuickBooks, that help simplify your ability to manage this on your own, but it is definitely a good investment to have a skilled person doing this work.
Get Expert Help
Business law is complex, and it’s important to get professional help, say the experts from Doré Law. There are tax issues, accounting matters, human resources laws and more. Having experts on your side from the beginning can avert potential crisis. The advice they offer is invaluable and a worthy investment for the safety of your business. Retaining business legal services can help you with incorporation paperwork, setting up how to handle collections actions, ensuring you are adhering to all relevant laws and even planning out your own retirement.
Make Time to Address Finances Every Week
Set aside scheduled time to address your finances at least weekly. Put it on your calendar and work other things around it. Once you get distracted or put it off it becomes too easy to fall into a pattern. If you have someone else handling your bookkeeping, you should be in communication with them regularly as well. You should have a fairly accurate idea of how much money you have, how much you are owed and what pressing expenses you have pretty much at all times.
Be Proactive In Tracking Invoices & Payments
This is the value of good software and professionals supporting you, but you need to stay on top of money that is owed to you. Be timely with sending out invoices and be aware if there are any outstanding. Your business relies on bringing the money in.
Your finances are the make or break aspect of your business. To be successful you need to make money, and you need to manage it well and make it work for you. You invest your time, energy, talents and money into getting your business off the ground, so make sure that investment provides you with the life and retirement you want.