Running a business is not a cakewalk. Keeping a tab on what your business earns and spends plays a vital role in the increment of success graph of your business. Are you aware where is your money going every month? If you have been not doing that, then it’s high time you start doing do. As per a survey, ‘Earn more, spend less’ was the resolution that most of the people took at the start of the year 2017. There are a number of businesses which avoid budgeting because they think that they can easily manage their daily expenses. However, many a time you will come across people who even after earning a decent salary can’t get out of the vicious circle of living paycheck to paycheck. So, what can be done to ensure that you don’t end up in wasting the money that you could have actually saved up for the future expenses of your organization?
In this article, we will answer this question by listing the ways by which you can track your business’ earnings and expenses in an effectual manner.
How to Track your Earnings and Expenses?
By keeping a tab on your earnings and expenses enables you to have a check on where your money is going and also prepares a realistic budget that will help you in your future spending.
Keep Separate Accounts for Home and Business
Whilst high scale enterprises do not keep same accounts for business and home expenditure, the start-ups, and small-scale companies may have the same account for both. Well if you are also in the same boat, we would advise you to get off from that boat rather than drowning in unmanaged expenses. Since it is easier to get the business loans approved and income tax returns taken care off with a separate business account, we always propose the usage of different accounts.
Measure your Net Total Worth
Knowing the net total worth of your business will help you in getting an insight of the capital your business earns. You can make use of a software for viewing your holdings at a given time. Such software allows you to link all your bank accounts, brokerage accounts and credit cards to their platform. Security is the last thing that you will have to worry about when it comes to such software.
Select an Expense Tracking Software
There is numerous tracking software which helps in keeping a track on the current earnings and expenses. This is by far, one of the most efficient and easiest methods of tracking your business’ expenses. With the help of such software, you can easily create separate categories for separate departments, which clients you deal with the most, and so on.
Choose an Online Invoice Generation Software
An invoicing software generates online invoices in a timely fashion and thus enables you to keep a check on the cash flow and make sure that your earnings always remain more than your expenses. Such software raise notifications when the clients have to settle their invoice. This saves a lot of time that would have been otherwise invested in calculating and looking for the clients which have not done the payment yet.
With the help of the above-mentioned steps, create a business view that illustrates how your business is handling its earning and expenditure. Make sure to record the details of the expenses done in all the categories on the monthly or weekly basis. This will enable you to create an overall picture of your business’ financial situation and will help you in cutting back the expenditure if the time and situation demand, for keeping your business running.
One such software that ace the field of online invoice software is CloudBooks. It is an online invoice, time tracking, expenses and payment management software, all clubbed together into one software. If you have this software by your side, then you got nothing to worry about. When it comes to the investment that you will have to make for using this software, it is zero. Yes, you heard it right. Since it’s a free online tool, all you need to do is sign up for free, log in to your account and explore endless opportunities for your business.