When you run your own business, keeping on top of your accounts is crucial. If you fail to do this, you will lose track of your ingoings and outgoings, and could end up in financial trouble.
If you want to ensure that your company is a success, keeping on top of your accounts is a must. That being said, many new business owners struggle with this. It isn’t easy getting to grips with keeping on top of your company’s finances. However, there is no need to stress, as that is where we come in.
To help you ensure that you can keep on top of your business’s finances, we have put together a useful guide. Here, you will find all of our top ideas and advice for making your accounting easier and less stressful.
Separate your personal and company spending
Don’t make the mistake of combining your personal and company spending, as this will make keeping on top of your accounts even harder. Have one bank account for personal use, and one for business use.
If you don’t already have a business account, open one, and use it for all of your business-related spending. Use your personal account for your own spending, and aim to always keep the two separate.
Record incomings and outgoings
If you want to make keeping on top of your company’s finances easier, recording all ingoings and outgoings is vital. This can be incredibly simple – all you need to do is record the money that is earned and spent. The best way to do that is by using a notebook or spreadsheet – spreadsheets tend to be easier to use.
This will allow you to track the amount that you are spending, as well as the money that is coming in. You can use this system to work out whether you are making a profit, or whether you aren’t breaking even.
Invest in good accounting software
If you want to save yourself time and hassle, investing in good accounting software is a must. What you want is a package that allows you to record your ingoings and outgoings, profit, losses, and invoices. You also want a package that can be used to calculate your tax payments.
While you could stick to just using a spreadsheet, having good accounting and business software, will make life a lot easier. It will mean that tracking your spending and working out your tax payments will be much simpler. Plus, most accounting software comes with support, so if you get stuck on something, you can always contact the support team.
Keep all business bank statements
As well as recording all money coming in and going out, it’s also important to keep all of your bank statements. You can scan these into your computer and keep copies on there, or you can use a traditional filing system. Whatever system you choose to use, just make sure that it is secure.
If you want to make dealing with your company’s finances a little easier, take note of the tips, above.