Here are five easy ways to simplify your finances so you can focus on what you do best – grow your business.
1. Separate Your Accounts
Opening a business bank account will allow you to keep your company finances separate from your personal ones. Apply for a business credit card to make it easier to track company expenses. Most major banks provide several options that offer points, cashback, and other benefits so you won’t miss out on any rewards.
2. Set up Pre-Authorized Payments
Use your business credit card to set up pre-authorized payments for monthly expenses such as internet and utilities. This will help build your business credit, ensure you never miss a payment, and free up your monthly cash flow.
3. Go Paperless
Have invoices and bank statements e-mailed to you and file them on your computer. If you don’t have a back-up system, invest in one or use a secure cloud service to protect your files in case of a computer crash.
4. File Receipts
Instead of letting receipts pile up on a corner of your desk, get a banker’s box and file folders for storing bills and other business papers. Organize the files by major categories – office supplies, transportation, entertainment and others – and clean out your wallet and briefcase at the end of each week so you don’t misplace any. This will make filing at tax time much easier.
5. Invest in Business Software
To manage your books, select a good accounting software program. There are many to choose from and some offer the added benefits of invoicing, time tracking, and expense management. With some online versions you can even sync directly with your bank account to further simplify accounting. Also, in today’s mobile world, the ability to take payments online or on the spot can help your business stay competitive.