Whether your business is big or small, it’s pretty important to know your accounts inside and out, and have them in order even before you start trading for the year. However, when things get busy and your time gets eaten up by other aspects of your company, it’s easy to drop the ball a bit.
Sorting out your accounts can also be a time-consuming, boring, and often frustrating process. In fact, there are quite a few business owners out there who feel like the accounting side of things is the worst part of owning a business. Let’s take a look at four tips for getting your accounts in order, so they aren’t as stressful as you perceive them to be.
1. Know Your Cash Flow
When it comes to getting your small business accounts in order, knowledge is power, and the more you know about it, the better. The more you know the numbers that are on the page in front of you, the easier it’s going to be to get your accounts in order.
When you come to your weekly or monthly financial review, try writing or typing up a cash flow statement. This helps you get to know your cash movement, both internally and externally. It means that you can learn to anticipate certain expenses, and accommodate for them.
2. Know What You Owe
The last thing anyone wants to do in small business is to know exactly how much they owe in terms of debt. However, staying on top of what you owe is vital to making sure that you don’t increase that exponentially in any way.
Learning all about what you owe might reveal a bit of bad debt that you’ve been putting off. If this is the case, consider taking out a short-term loan to deal with the problem straight away, so you don’t have it hanging over your head for too long. Title loans are a great option to take control of what you owe and reduce any stress around this.
3. Know How Receipts and Invoices Differ
When you’re running around trying to manage your small business, it’s easy to get paperwork mixed up, especially when it comes to receipts and invoices. One of the best things that you can do to prevent this type of mix-up is to learn about the difference between the two.
An invoice is a bill that you send out to your customer, while the receipt is proof that the transaction occurred. If you mix these up too much, you can quickly start to lose control of your accounts, and require more accounting than you thought.
4. Separate Business and Personal Accounts
For the first few months that your business was running, you might have used some personal funds to keep it going. Now, though, you have separate finances when it comes to your business and personal accounts.
Keeping things separate is essential for being able to keep track of how much the business is actually making, if you mix the two, you could be missing important transactions that were business-related.
Keeping on top of your accounts when you’re a small business owner isn’t easy, but with practical tips like this, it can be done.
About The Author:
Aqib Ijaz is a digital marketing guru at eyesonsolution.com. He is adept in IT as well. He loves to write on different topics. In his free time, he likes to travel and explore different parts of the world. You can read more of his blogs at eyesonsolution.