sjsmith.com.au - blog
Keeping on track
For many small business owners just the thought of anything to do with accounts or finance fills them with dread. It really shouldn’t and particularly if you’re fairly new to business you can start small and gradually flex your money muscles over time. Even if you’re not new to business there’s no reason why you can’t learn the basics.
Business finance at its simplest is just money in less money out. And that’s also the basis for bookkeeping. Now by book keeping I’m talking specifically about account keeping. Tracking your finances. Depending on where you live you may also need to keep track of any taxes you have paid or owe. When we first started in business I had a small exercise book with ruled columns where I tracked all of our incoming sales and outgoing expenses. When we grew a little I started to categorise alL sales and spending so that I could better see where our largest outgoings were and where our biggest sales came from. It was years before we moved to computerised accounting. Now we run a full accounting software package with integrated payroll, electronic banking and massive reporting capabilities. It can be messaged or emailed to my accountant.
These days there are many electronic accounting packages that suit small businesses, even those just starting out. Speak to other business owners or check online feedback to find one that fits your needs and budget. If you spend a lot of time on the road make sure that it’s mobile friendly. Many packages offer free trial periods for you to give it a go.
If money is an issue don’t be afraid to try old school accounting and write your accounts by hand. We all had to start somewhere.
Whatever method for account keeping you decide on make sure you’re making regular entries and keeping up to date with your sales and spending. Keep all of you receipts safe and it doesn’t hurt to take a photo of them. Make sure you also keep a folder on your electronic device for any electronic receipts you receive. Keeping accurate records is your first taste of accounting and it’s a simple discipline any one can learn! If I can do it, you can too!
Till next time,