Managing your business finances can seem quite overwhelming, but it doesn’t have to be. The most important element of business bookkeeping is to keep yourself well-informed regarding your business finances. Practicing the following action items once a month will help you keep your finances organized and under control.
Track All Expenses
Any product or service you purchase that is directly for your business can be classified as a business expense. Be sure to keep all receipts and print all digital receipts as well. Keep them organized in a system that works for you – category, month, etc. This makes it easy to find during tax time.
What type of expenses can you include?
- Internet service
- Digital or online software
- Equipment and furniture
- Training and education
- Office supplies
- Travel – gas, food, lodging
- Monthly memberships
- And anything else related to running your virtual assistant business
Track All Income
There’s no right platform or best online application to use when it comes to tracking your income. There are numerous options out there from bookkeeping software created specifically for small business owners all the way to simple, but effective spreadsheets. Keeping track of your income will not only get you ready for tax time but also help you know if you’re hitting your income goals each month.
Send Invoices on Time
Depending on the agreement you have with each client, you may need to send invoices at different times of the month. Whatever schedule you decide, send your invoices consistently. Your client will also expect to receive invoices at the same time each month/week, helping you get paid on time as well.
Reconcile Bank Statements
Once a month take the time to reconcile all of your bank statements, including any credit card statements. Keeping your statements up to date will help you catch any discrepancies in your accounts before it’s too late to fix them.
Would you add any items to the list above?