Your Finances Organized, Why Important?
Blog Post #102
Your Finances Organized, Why Important?
“Organization is Key”
Sounds pretty cliché right?
And although it might, truth is, organization is one of the key foundations for success in your business.
Having an effective, organized financial system ensures the money operations of your business run efficiently and smoothly on a consistent basis. This includes your bookkeeping processes, how you manage your financial activity and even how you store your data.
As you read through the list below of ways you can implement more organization into your business life, you will see it goes a little deeper than picking out colorful file folders for storing paperwork.
Now, if you’re a natural tidy person, this may come easy for you, but for those that need a little assistance in the “neatness” of things, no worries, I’ve kept them simple.
Use Accounting Software.
This is how you keep everything in one place. You can easily track revenue and expenses from all your business accounts without needing to search through different spreadsheets, or multiple documents.
Separate Business and Personal Finances.
Keeping your business from your personal is a lifesaver. You find it best for keeping your business activity organized, easy to manage, and accurate for tax prep reporting. You should have separate banking, credit cards, merchant accounts, etc., if you can get a business account for it, do it!!
Create a Tracking System.
You need an organized way of how you will manage important documents like receipts and invoices, and a detailed process for collecting payments from customers, and paying vendors and expenses.
When it comes to your filing system, in my opinion, digital is best, but whatever way you choose for your liking, you just want to make sure you organize things in a systematic way. Use categories and groups for different types of documents and any records you need to keep record of.
Make and Stick to a Schedule.
Take the time create a weekly schedule and STICK to it! This is the time you will dedicate to managing your tracking system. If Friday is when you want to pay your Vendors, only pay your vendors on Friday. Having a schedule not only keeps you organized as the owner but also sets a level of expectation for your customers, vendors, employees, etc.
You also want to set a dedicate a day monthly to reconciling accounts, reviewing reports and financial statements.
Maintain a Budget.
Your budget organizes your expected revenue and costs. This is important in helping you manage cash flow, which is a vital. Having a budget helps you organize how much you need to allocate to each area of your business and when to expect changes in your normal flow of spending and profits.
It’s important to remember that organization is part of your foundation. It helps create stability which can lead to ongoing success. And if it’s something you just can’t find the time to make a priority, make sure you get the expert help you need to do so!! It’s an investment (either from your time or money) that you won’t regret.
Best & Savviness Always,
Bria G