Six Normal Phases to Run Your Business Finances
Six Normal Phases to Run Your Business Finances, Loose papers, receipts, notes, credit card bills, financial reports, tax returns – these are the byproducts of belonging to a business. On the other hand, they take up the gap on your table and in your heart and every time you take a look at the litter you feel disorganized.
Before I built a system to run my business paperwork in the manner I’ll soon debate, I felt disjointed, out of whack, and like I have not got anything done. Thus, I would walk into my workplace and wish to turn right around and walk out.
Is there a perfect method to run your business finances? You bet. Follow the phases below to build a simple, yet the functional method to run your business and live a more carefree life.
1. Get a Binder
Buy a three-ring binder depended on the volume of paperwork you create every year. A 1.5 or 2 binder could be adequate for most businesses. However, you are going to one binder for each year you are in business so that every comment pertaining to your business at that time of the year is on one site for easy retrieval. In the viewing window kind of a cover that reveals the name of your business and the year.
2. Get a Three Hole Punch
Buy a three-hole punch. It is to hole punch all larger receipts, files, and financial reports and get them fit nicely into your binder.
3. Get a Zipper Compartment
Buy a plastic zipper compartment from an office supply shop to hold little receipts.
4. Buy Accounting Software
Get yourself accounting software in order that you are able to track your finances. Thus, professional business owners track their interests and losses utilizing the correct materials and analyze their financials regularly. Furthermore, try to start tracking sales and expenses from the starting of your business or the starting of the year.
5. The system
Prepare paperwork in your binder according to month. Keep all receipts, credit card reports, and bank statements, and sales tax reports. At the end of each month, run a Profit and Loss Reports and a Balance Sheet. Moreover, the Financial Reports are the separator for each month. So, file small receipts that cannot be hole-punched in the zipper compartment at the back of your binder.
6. Close it out
At the end of each year, reconcile your credit, print your every year Financial Reports, and close out your year. Otherwise, put the binder away and begin a new one for the New Year. Offer your accountant or CPA a copy of your QuickBooks document to prepare your income tax return.