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Keeping Up With Your Finances

August 16, 2016


When it comes to keeping books, especially business accounts, some people find it easier to bury their head in sand and not really know what’s really going on with their accounts. It is imperative that a business no matter how small have a professional accountant look after its accounts so that it is done without mistakes. Many people use Accountancy Services in the Sunshine Coast to do their books for them. Not only do they do accounting precisely, they encourage business owners to be proactive and be involved in their accounts. Make it easy and simple for yourself so you won’t dread looking at your financial information. Here are some things you can do to keep on top of your business finances.

1. Have a regular peek at how much you have in the bank. The number in there will give you some idea of where you stand financially. Don’t put it off. Even though you have little. Knowing what you have in there gives you some of idea of what you can work with and what you need to do to increase the number in there. To make sure everything is in order and no transaction is out of place, read over your account history. Banks usually mail that information to you once a month, but it’s better to have online access to your bank which will show you the most recent banking activities. If you have your own system on your computer with all your business or personal activities, compare it to what your banking information says to make sure everything coincides.

2. Keep hardcopies and digital copies of your receipts from important purchases or other transactions. Keep them in a digital memory device or in a file folder. These will be important to have when you do your taxes. When you have receipts, it’s important to organize them right away instead of just stuffing them in a drawer to worry about them later. Staple them onto a piece of paper side by side and put them in a dated and named file folder for easy finding later. That will save you time and stress from looking for them when it’s time to do your taxes.

3. Every month or even every couple of weeks have a quick look at how much you made and how much you spent. This will help you to know how your business is doing money-wise and you can quickly correct mistakes or change things that are not making you money. Ask yourself, what is my net profit? Subtract what you spent from what you made each month and that is your monthly net profit. If you’re in the positive numbers after calculations, then you’re making a profit. If you get negative numbers after calculating your net profit, then you have to look at where you spent your money or why you didn’t make a lot of profit that month. Compare how you did that month with how you did previous months or even previous years to assess where you need to make changes if you need to do so.

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