Keeping Your Business Finances Straight

March 19, 2013

Business, Finance

accountantOne of the most complex parts of owning a business is keeping all of the finances straight.  From worrying about invoicing customers, paying vendors, and filing taxes and reconciling the bank statement there are many complex financial items to consider on a daily basis.  When you are looking for the best way to keep you business finances straight consider the following:

  • Use a software program that does it all.  There are many programs available today that will help you manage all of the finances of your company.  These programs provide built-in options for creating customized invoices and tracking individual customers.  They offer great options for creating working budgets and tracking vendor payments and charges.  Many programs will also provide the tools necessary for completing payroll, tracking inventory, and of course tracking owed taxes and other important expenses.
  • To succeed in business today it’s important to accept credit cards and debit cards as a method of payment.  When accepting credit cards there is some concern about credit card chargeback.  When you are looking at the options for accepting credit cards you should be sure to check things such as the transaction fee, the rate you will be charged, as well as the company history.  You should also prepare to have a buffer established when you begin to take credit cards to provide for unexpected charges or chargebacks.
  • Create a good filing system.  In addition to tracking your finances with a computer program and choosing a good credit card company or merchant account to work with, it’s important to have an organized filing system.  There will be times when you need to research into past expenses or invoices to find specific information.  Having an organized filing system allows you to quickly find what you are looking for without searching for long periods of time.
  • Back-up everything.  Your filing system is one source of back-up information, but it is important to remember to back-up electronic files and financial records frequently.  Most importantly if you use one program to track and record everything consider backing up the information once a week to ensure you don’t lose important data.
  • Reconcile every month.  If you want to know where your business finances stand, make sure you are reconciling your bank account to your financial records every month.  This helps to not only ensure that you are working with accurate information and numbers, but also helps to ensure that you catch any mistakes or questionable transactions quickly.

Business finances can be one of the most stressful as well as the most time consuming duties for your business.  As you master the world of business finance and find a program and system that works for you, you’ll find you are not longer tied down and are able to focus more attention to serving customers and completing more important business projects.

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