There is more to businesses than just buying and selling goods and services. A business can grow and even branch out. Before you get excited about the future, first you must learn Låna 15000 how to keep track of your business. You don’t need to be an accounting whiz either, this articles will show you some useful ways to keep track of business transactions.
We’re talking about cash flow, which can be positive or negative. Positive cash flow is when money comes in. Negative cash flow is when money leaves the account.
It’s important to handle finances correctly so that you can keep cash flow positive. Many companies experience financial trouble mishandled books, which then leads to wrong budgeting and over spending. Here are some tips on tracking your business transactions:
1. Record everything.
Whether it’s a ledger book or spreadsheet, it’s important to write down all business transactions. Spreadsheets are easier as it can automatically do calculations and you can change items without having to use the eraser. Firstly you have to start with the balance forward, and then you can start counting your monthly payments going out and receivables coming in. Business deals should be done either in cash or check.
Money comes in and goes out all the time, but what are you using it for? It’s important to note down if the money was spent on rent, supplies or advertising. This will also set up categories in a general ledger later on.
3. Appoint a finance officer.
It’s important to appoint someone to handle the books. It is common in some companies, that if there are more than one person withdrawing cash, your books can easily go out of sync. There should be an appointed person who will handle all aspects of finance and maintain communication between everyone.
4. Master checkbook.
It is always good to have one checkbook rather than two, just like one check writer is better than two. Use a numbered checkbook when you’re paying bills so that you can keep everything in consecutive order. Use the check stubs to record the amount and payee, that’s the part that’s left when the check is torn out.
5. Deposit everyday.
Some people leave the deposits to end of the week or just until there are more money to deposit. This is fine for personal accounts, but for a business account that doesn’t offer much of a trail of verification. This is good for business too to record transaction dates.
6. Collect money as soon as possible.
There might be transactions recorded but your bank account is still empty. Hence collecting money is important to balance your books. So you should keep payment terms to thirty days and no more than sixty.
If the finances are in disarray, then it’s easy for a business to go under. These pointers above may seem like a lot at first, but you will soon get used to it. When you do you will see how smoothly your business runs.