How to keep financial records as a new business

How to keep financial records

It is quite easy to forget about finance management especially if you are just starting out with your business. This is usually caused by lack of money strategy due to several factors such as a busy schedule or poor accounting skill.

Owing to the above, you might discover the following trends few months into running your business:

  • Business income and personal money are kept and withdrawn from the same purse
  • You are not keeping proper account of your revenue
  • You are not calculating profits and/or loss

The aforementioned are capable of hurting your business, and nobody wants​ this to happen to any of her endeavors. The following tips can help you keep financial records, even if you have use makeshifts till you are ready to start a proper one.

However, whatever you do, don’t tarry on starting to keep proper records. In fact, if you are able to set it up along with the other preparation​s you must do before you start to run your business, please do it. Moreover, you really start to spend money even before you kick off on operations. Expenses such as business registration, office space and raw materials all require proper records.

So, to avoid financial issues, keep it simple but make a move to keep records no matter how basic.

Two separate purses and a simple cash book can keep you going till you are able to make time for proper financial management or help from an expert. Not for too long though.

If you happen to be occupied whether with core job functions or mothering, and can barely make time for other business tasks​, I suggest you hire an accountant or outsource your financial records to competent professionals.

The deal is to keep proper notes​ of your revenue and expenses. Remember it is a new business, you need to make accounts in order to determine if it is worth it or not and make proper adjustments as soon as possible.

What strategies are you using to manage your revenue and expenses as a new business? Share with us in the comments.

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2 Comments

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