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Accounting is one area of business that sometimes even the most successful entrepreneurs get stuck on. They let things build up and get out of control. Then, when it comes to filing a tax return, they’ve got no idea where they stand and have to pay an accountant a fortune to sort everything out.
Even if you’ve got an accountant, it’s a very good idea to keep on top of your finances. This way you’ll always know where you stand, be prepared for any financial issues your business may face, and easily spot ways to save yourself money. Here are some great ways to keep your accounts organized and easy to manage.
Filing
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File everything. Keep a folder for invoices and another for expenses. Organize these into months and type. Then, make sure you use them. The best way to stop things getting lost is to file them straight away before you have a chance to misplace them.
Online
Saving things to the cloud is another great way to avoid losing things and simplify your systems. Saving everything online means it’s there when you need it, wherever you are, whatever device you are using. Keeping things on a screen in front of you also makes it easier to compare and spot issues. Compare your receipts and invoices to your financial forecast regularly to ensure you are still on track for your projections. If you aren’t, make the necessary alterations.
Spreadsheets
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Spreadsheets are so simple to set up; you can just download a template, customize it to your business and get started. Save your spreadsheets each month then when you need figures you won’t have to go trawling through invoices or do any sums.
Set Aside Time
One reason accounts get messy is that people simply don’t make time to look after them. Set aside an hour or two at the end of every week to look through that week’s paperwork.
Prioritize
As with anything else in business, some things are more important than others. You will have financial concerns and issues that need to be dealt with as soon as possible, and there will be things that can wait until your end of week admin slot. You need a small business insurance quote as soon as your old policy is coming up for renewal, but filing the receipt from a business lunch can wait. Write things down, so you don’t forget anything and try to prioritize your tasks.
Regular Maintenance
The accounting and filing system you use when you start your business might be fantastic, but it won’t necessarily keep working well once you take on more clients and your business grows. Regularly look at your systems, make a note of anything that could be better and find new systems. While having a routine is great, you don’t want to get so stuck in your ways that it hurts your business or inhibits growth.
Finances only get out of control if you let them. Try to set up good habits and learn as much as you can about economics and finance as soon as you can to avoid financial pitfalls and continue to develop a successful business.
