It’s never too soon to think about your yearly financials. Good businesses keep a finger on the pulse of their business operations all year long.
If you’re getting started or haven’t been as diligent you should, here are some tips to get back on track.
Create a File With Your Important Documents
Scan legal papers, loan agreements, insurance and tax documents into a digital file and save it to the cloud. Then, place the originals in a safe place. Consider giving another key person access to these files, just in case you’re incapacitated. Create another file for financial documents, such as receipts, bank statements and cancelled checks.
Match Up Inventory and Assets
At the end of the year, make sure your inventory on the books matches what is actually in your warehouse. Make sure that the fixed assets on your books are still working and viable to your business. A once a year audit can give you a lot of information and make sure that your tax filings are truthful.
Reconcile Bank and Credit Card Statements
It’s a good idea to reconcile statements monthly. You’ll catch errors quickly and make sure that your balance sheet matches the actual records. It might be tedious, but it can save you time and money all year long to spend one afternoon each month handling your business finances.
Check Your Accounts Receivables and Payables
Invoices that haven’t been paid might show up on your balance sheet, but it doesn’t really benefit your business operations until the money shows up on your cash flow sheet. Make sure invoices aren’t overlooked by collecting on them before they get too old. In addition, make sure you are paying your vendors on time.
Contact BizCap Commercial Finance for financing options that fit into your business goals and help keep you on track financially.