The month is coming to a close. How are the records for your company looking?
Every month, you should be looking at your business as a whole to understand how things are going and to get a feel for the bigger picture. When we evaluate new initiatives and expenses before the end of the month, we can always make faster and still-informed decisions to prepare for the next month.
To get the full tax benefit of claiming legitimate business expenses, you need to be able to support them.
If you already have a bookkeeper, it is wise to get a monthly check with them to make sure your books are in order
If you are a DIY-er, you should make a plan to sit down and commit some time on a monthly basis to keeping your books in order
Here are some tips on how to get a get a better business snapshot
✉️ DAILY
All your Receipts and invoices must be kept in a specified folder
Keep a paper trail of anything that happens in your business, which might mean keeping the receipt from your coffee meeting with a new supplier or bookmarking the email receipt for your latest round of digital ads.
The reason of why it is so important to track receipts, invoices, and relevant emails is simple, when all are easily accessible, you save time a lot of significant time or effort in freeing up your schedule to focus on many other things.
✉️ WEEKLY
Check how is your cash flow statement and your variable expenses?
Do you have money in the bank, how much, and what does that money need to cover?
Most of the time, we already set up a plan on what we should spend on, but there will be times new expenses, or variable expenses comes in. Which is why you’ll want to keep a closer eye on them to make sure they’re aligned still with your business expectations.
✉️ MONTHLY
When you have all the bits and pieces checked, it will be easier to review and think more strategically about how all the expenses fit into your business. It will help you prepare for next month. You will be able to easily indicate profitability, and you can also create unexpected profit by analyzing your expenses and creatively finding ways to lower them.
You can save money by looking into supplier discounts based on your payment history, bulk ordering, or pre-ordering specific products.
When you stay organised, it is always easy to pivot!
Proper bookkeeping will always give you firsthand knowledge of and access to all your financials, which puts you in a powerful place to make informed decisions about your business’ future.
There is always value in getting an expert bookkeeping help and advice, to make sure you never lose the solid understanding of your numbers, day to day.
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