Organising Your Business Finances
Whether you are starting your own business or have an existing business – organisation is imperative to success. Neglecting finances can be fatal and many companies fail because of lack of knowledge of their business finances. Keeping daily accounting practices is paramount to staying on top!
Paperwork, receipts, notes, credit card bills, statements etc are all by products of owning your own business and they take up a lot of space if a system is not created in which to organise them. You can feel that paperwork is getting on top of you as your space on your desk becomes less and the paperwork gets higher. To walk into your office and see this just makes you want to walk out again.
Bills are a nightmare – keeping them together and paying them on time is imperative to a successful business. Have separate files for bills to pay and bills paid. Likewise with credit card bills. Always keep incoming and outgoing bills separate and up to date so you always know where you stand.
Bank statements need to be arranged in monthly order and you need to make sure that they are reconciled monthly.
Maybe you will need to purchase accounting software to keep track of your finances. Accounting software can help you to analyze your finances regularly and keep them in order. A software system can help you run your financial statements each month i.e. profit and loss and balance sheet.
Arranging with your bank for overdraft facilities and the right type of credit cards to use within your business is essential. Making sure that you keep personal and business completely separate.
You may have to get a business loan or finance to set up or grow your business. A business should have a line of credit in case of cash shortfalls. Your bank can help with this.
Consolidating balances outstanding into one can make it easier – watching out for transfer fees! Also if you have savings accounts in various places consolidating them into one can make life easier.