Small business success is filled with tasks you love to do and those that you don’t like to do. Do you find yourself putting off tasks like accounting and finances? Does this procrastination leave you staying up late at night or on the weekends, trying to catch up?
As a small business owner, you know that finances are critical to your success. Here are 5 easy ways to simplify your finances, so you can concentrate more on the tasks you like to do.
- Separate your accounts—Opening a business bank account allows you to keep business and personal expenses separate. And, having a business credit card makes it much easier to keep track of your business expenses. Each of the 5 big banks in Canada have business accounts tailored for different industries. A quick search on their website may help you to determine which bank is best for you.
- Set up pre-authorized Payments—Using your business credit card to set up pre-authorized payments for monthly expenses such as internet and utilities, helps to build your business credit, ensure you never miss a payment, and free up your monthly cash flow.
- Go Paperless– Have invoices and bank statements e-mailed to you and file them on your computer. Invest in a back-up system or use a secure cloud service to protect your files in case of a computer crash
- File Receipts—Don’t let receipts pile up on your desk. Get a bankers box and file folders to store bills and other business papers. Organize by major categories such as office supplies, transportation, etc. Make sure to clean out your wallet weekly to lesson your chance of losing receipts. Tax time will be much easier!
- Invest in Business Software—Investing in a good accounting software program will make managing your books easier. You can even get versions that have invoicing, and expense management services. Online software versions, have the ability to sync directly with your bank account which not only simplifies accounting but can keep you competitive in today’s mobile world.
On a final note, be sure to log in to your business accounts weekly or monthly to review them for any unauthorized transactions, just as you would with your personal accounts, to protect your growing business.
If you need help with decluttering your business finances OR want to get more information, you can set up a complimentary, 30- minute phone consultation at calendly.com/mjhfinancial OR email me at michael@mjhfinancial.ca.
P.S. Because your finances are so critical to your business success, it just makes sense to simplify your finances this way. Why not give it a try so you can do the things you love more often?