William Eve, a personal finance writer who also writes for small businesses wrote this insightful article for us where he shares useful and practical steps on how small business owners can organize their finances better.
In between surfing, cooking and travelling, William writes about saving money, property investment and real estate for a home loan comparison service: Home Loan Finder.
Read further to learn how you can maintain your finances in a systematic order in 2011:
Steps to Organize Your Small Business Finances in 2011
A new year means a new start. If you have wanted to get organized in 2011 there's nothing stopping you. There are several steps you can take to help organize your small business this year and move it forward.
If you are just starting out or you are a seasoned business owner, managing your finances properly will do wonders for your business and help it to run more smoothly. You will find that once your finances are in order your time can be spent elsewhere on your business.
What To Do To Get It Together
You do not need a financial expert to come in and help you to get your finances organized. There are some tried and true steps that you can follow that will help to streamline the process and keep your finances on track.
A place for everything and everything in its place:
You may have heard this old adage before. Well, its true now just as it has always been. If you have all of your financial paperwork and bills in one place you will have a much easier time keeping track of them. It is quite easy to misplace a bill but if you have one spot to go to where you can find everything you are much less likely to do it. It does not have to be a fancy filing system but it does have to be convenient and easy for you to use. If the process is cumbersome or inconvenient you will not be likely to do it.
Pay your bills on time:
Keeping your bills organized and in one place will make it easier to keep track of them. This will in turn make it easier for you to pay your bills on time. The last thing you want to deal with as a business owner are bill collectors asking for their money. If you can, pay the bill as soon as you receive it so it is done and out of the way. If you need a little extra time, contact the creditor to find out how much time you have before the payment is regarded as late.
Go over your statements:
Credit card companies are run by humans and humans can make mistakes. It is important that you look over each of your statements carefully to ensure that there are not any mistakes or inaccuracies or charges that are incorrect. You also may find fees that have been assessed improperly. Occasionally, you may find something on your bill that needs to be corrected and the only way to know is to look at your bill.
Go electronic:
There is nothing nicer than not having to worry about sending out a check. If you have the option to automate your payments, take advantage of it. It will make your life so much simpler to not have to worry about getting a payment sent out on time. Check your bank account and find out if you can set up some bills to be sent out from your account automatically. Be sure to check on it occasionally to make sure things are being sent out as they should be.
Use financial software:
There are many types of financial software that help you stay organised. Two are Quicken and Microsoft Money but there are others, as well. You can reconcile your statements very quickly with these programs.
As you can see, it is quite simple to take charge and get your business financial house in order. Once everything is running smoothly, you can start to focus on other things to grow your business.
Thank you William for contributing a great post for our readers. We truly appreciate it.
If you wish to read more articles written by William, you can find him at homeloanfinder.com.au. HomeLoanFinder offers a comprehensive range of guides and reviews to help first home buyers, property investors and those looking to refinance.
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In looking at organizing your finances, one of the most important things is to know your break even point on a monthly, weekly, and daily basis. It's hard to figure out how much you want to make in business until you know exactly how much money you have to bring in before you see anything in your pocket.
Kevin Weir
BusinessEmergencyRoom.com
Thanks for a useful tip Kevin. :)
In looking at organizing your finances, one of the most important things is to know your break even point on a monthly, weekly, and daily basis. It's hard to figure out how much you want to make in business until you know exactly how much money you have to bring in before you see anything in your pocket.
Kevin Weir
BusinessEmergencyRoom.com
Read further to learn how you can maintain your finances in a systematic order in 2011: