Poor management of the finances of your business can lead to failure. It is crucial that you have proper management of your business finances for success. Research from the Bureau of Labor Statistics showed that 20% of businesses don’t make it to year one. Further to this, only 30% businesses will remain in business after their launch.
The most common reason blamed for business failures is more finance management. Many businesses do not have someone that takes on the role of looking after the finances. Other businesses don’t adhere to best practices and fall behind with managing the cash flow and business finances.
In this blog post we share some top tips to help you keep accurate business records. This is an important part of proper business finance management. Not only will these tips help you manage your business finances properly, but they may also lead to small business growth too.
There is accounting software out there that will help you automate as much of the bookkeeping process as possible. This includes the processing of receipts and digital storing financial records too. This will enable you to document the amount, time, place and business purpose of each transaction, with ease.
Generally speaking, your business records need to include three things. These are receipts, expenses and fixed assets.
The receipts are the income that you receive from your business. These records include the rolls from your tills, any deposit information, your receipts book and all invoices.
You need to keep records of the costs that you incur to run your business. These include things like cancelled cheques, documents reflecting proof of payment or electric funds being transferred. Credit card receipts, account statements, credit card receipts and invoices.
Top Tip: you may want to consider downloading a receipt scammer onto your smart phone. These apps will automatically map the content of the receipt and place it in the defined sections of your chosen accounting software.
Your fixed assets need to be included in record the annual gain or loss when you sell products or services. These include asset documents such as purchase and sales invoices., closing statements and other documents that identify the payee, amount of proof of payment or electric funds. Fixed assets also include credit card receipts, statements and invoices.
If you need advice or support to help keep accurate records for your business, call our team of friendly accountants now. We will be only too happy to help you, and your business.