Keeping your business finances straight

When you run a business on the side you have to stay on top of things. If you don’t you soon end up in trouble. Pulling an all-nighter to catch up with your accounts and expenses is not an option. Simply because you have to get up early to get the kids ready and arrive on time for your day job. So, you have to invest in the right tools, learn how to use them, and be disciplined. To help you with this I have put together this short guide.

Use invoicing software

If you work collaboratively with product producers or provide other bloggers with content you should make sure that you get paid for your time and work. Most people will want you to raise an invoice, so they can use what they pay you for their own business expenses. Using an invoice template from freshbooks.com is the easiest way to create a professional-looking one. You want your invoice to look official and contain all of the information the other person needs to add to their accounting system.

Do your invoicing as you go along

Try to get into the habit of sending the invoice the moment the other person approves your work. Then immediately log the fact that you have sent it to the client in your accounts package. Doing this greatly increases the chances of your getting paid on time. You and the work that you have done is still fresh in the mind of the person you are sending the invoice to. If you include a payment link in the invoice all they need to do is to click and pay you.

Regularly review your accounts

Get into the habit of reviewing your accounts regularly. At a minimum look at your bottom line each week. Doing so is an effective way of ensuring that you keep everything on track and complete all of your financial tasks on time. At the end of each month print off a full set of accounting reports and review them. You can find out what the important ones are and how to get the most from them by clicking here.

Be sure to manage your cashflow

If you are paying yourself, or others, a wage or need to buy raw materials to be able to create your product or provide a service, you must keep a close eye on cashflow. You do not want to run out of money and not be able to buy the materials you need to fulfil a customer’s order. Or not be able to pay the service charge or the electricity bill for your office.

Provided you do the above you should find it possible to keep control of your business finances. It will certainly make it easier for you to be ready to file your annual tax return.

this is a collaborative post

 

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