How to Stay on Top of Your Business Transactions
Daily Business Transactions
There are several different types of transactions that you need to track day-to-day for your small business. These include:
● Customer invoices
● Purchase invoices and receipts
● Payroll
● Banking transactions
● Customer cheques or deposit slips
● Cancelled cheques
These are just a few of the transactions that you need to track on a daily basis. Depending on the type of business you run, there may be other transactions that you need to track as well.
For example, if you sell products online, you will also need to track inventory, shipping costs and your e-commerce fees.
It's important to keep on top of these transactions, as they will give you a clear insight into your business' finances. This way, you can make sure that you are keeping accurate records and that your business is running smoothly.
Month End Transactions
At the end of each month, you will also need to track some additional transactions. These include:
● Bank reconciliation
● Accounts receivable
● Accounts payable
● Cheques and deposit registers
● Sales report
● Inventory ageing report
● Payroll Register
● Monthly income statement
● Balance sheet
Tracking these transactions will give you a clear picture of your business's financial health. This way, you can identify any areas where you may need to make changes or improvements. You should also compare these transactions against the previous month, as well as the same month last year, to get a clear picture of your business' growth.
Year-End Financial Transactions
At the end of the year, you will need to track some additional financial transactions. These include your annual:
● Income statement
● Balance sheet
● Cash flow statement
These documents are important for tax purposes. They will also give you a good indication of your business's financial health for the year. This way, you can identify any areas where you may need to make changes or improvements before problems begin to pile up.
Cloud Accounting Software
It may seem impossible to keep track of all these transactions, but thankfully, there are some tools that can help. Xero cloud accounting software could make your life easier.
Xero makes it easy to track your business' finances and see where your money is going. This way, you can make sure that your records are accurate and up-to-date.
The biggest help cloud accounting software like Xero can give you is automation. You can automate invoices, upload receipts via your smartphone, keep an eye on cash flow and generate detailed financial reports with the click of a button. This way, you can gain detailed financial insight into your business whilst also saving time.
There are many different
cloud accounting software
options available. Some of the most popular ones include:
● Xero
● QuickBooks
● FreshBooks
Each of these software options has different features and pricing plans. It's best to speak to your accountant or financial advisor about the program and subscription package that best suits the needs of your business.
At Brush Up Accounting, we understand time is your most valuable asset! We can help you automate your processes, save you time and love your business again.
Working with us as your virtual bookkeeper and accountant offers you a seamless and efficient financial management experience. We will set up your cloud accounting software, connect all the necessary apps and bank accounts, and provide you with basic training to streamline your invoicing process and help you with your
business expenses.
This means that all you have to do is send us your receipts and invoices every month, and we will take care of the rest. This not only saves you time and effort but also ensures the accuracy and integrity of your financial records. With our expert support, you can focus on your core business activities, knowing that your financial management is in capable hands.
Final Thoughts
Keeping on top of your small business' financial transactions is essential for keeping accurate records and ensuring that your business is running smoothly, and it doesn't have to be difficult. Trust us- in three months' time, you'll be extremely glad that you started today.
Final thoughts
There is a lot to think about when it comes to financing your startup business. However, by creating a realistic budget and a long-term plan, you can then set about gathering adequate funding to cover your costs.
Overall, financing is crucial for a business's survival, growth, and success. It provides the necessary resources to start, operate, expand, innovate, and navigate challenges effectively, ensuring the business remains competitive and sustainable in the long term.
