Being constantly busy is agood thing when it comes to your business. But the frenzied pace couldcontribute to a total disorganization of your company’s financial picture. Hereare some easy ways to get your finances organized:
• Never mix personal andbusiness expenses.
• Organize all yourfinancial records. Create specific file folders for POs, bills, bankstatements, etc. Every financial record that impacts your business should befiled and easy to retrieve.
• List in detail every fixedbusiness expense – salaries, mortgage/rent, equipment payments, insurance -including the amount due and the due date for each monthly payment. Then,record weekly/monthly sales and monitor for any trends. This will help you makesure to put enough aside to meet regular obligations, and help you see whereadjustments can or need to be made based on business.
• Make a list of allnon-fixed costs – discretionary spending – including entertainment or businessmeals, non-essential tools/equipment, non-essential product purchases, etc.Track these closely for a couple of months, and you quickly see where money canbe saved.
• Set up a direct depositsavings account for your business, forcing you to save money each month. Startsmall if you have to, but this rainy day fund could come in handy if businessturns sour.
Better organization meansbetter control. You don’t have to work on the cheap, but if you don’t know whatyou’re spending, every expense could be an extravagance.
Click here for more ways to boost your shop’s financial health.
– Source: Tire ReviewBusiness Toolbox
