Running a business can be stressful, no matter what size it is. But you know what is even more stressful? Making sure that you are on top of your business expenditure. This is dissuading people from starting their own business.
But you don’t have to be a math genius to be on top of your business expenses. By arming yourself with the right knowledge and discipline, tracking your business accounting can be less daunting.
- Set up your bank accounts
Yes, you read it right. Opening several accounts for your business can be an advantage. As the old adage goes, do not put all your eggs in one basket. Set up a bank account for savings and another one for other expenditures. You can put a percentage of your business income into the expenditures account and deposit the rest in your savings account. Be sure to activate its online settings so you can transfer money electronically if needed.
- Do not mix personal expenses with business
The downfall of most businesses is they use business funds for personal matters. This can cause financial instability. As much as possible, keep your hands off your business income. It will save you not only from going through a horrendous accounting mix up, but also from potential bankruptcy.
- Keep track of your business expenses
This can be a handful since you have to list down every business-related purchase or expense. But once you get the hang of it, it can be pretty useful to you. You can see what purchases take up majority of your business income and you can come up with a plan to cut corners. Be diligent in reporting any expenses to your finance officer or accountant. If you are handling your business on your own, create a internal system.
- Invest on a good payroll system
If you have a couple of people working under you, it can pretty stressful during payday if you don’t have a payroll system. A payroll system makes it easier for you to compute and allocate the salaries of your employees and lessen human errors on computations. Get one that suits your business needs. There are free payroll software platforms that you can use if you don’t have the budget for it.
- Be mindful of your calendar
Some business owners pay a hefty price for forgetting the tax month. Penalties usually cost more than you think. Be sure to set reminders so you will know when to prepare your tax papers and when to pay your suppliers.