Over 80 percent of all small businesses will need financing to expand, according to Entrepreneur, and this means you need to get your financial statements ready. As a small business owner, organized finances will be a huge factor in your overall success. Organized finances are necessary for accurate financial statements, which not only allow you to determine your bottom line accurately but are also necessary to procure financing.
Use Financial Export Features to Streamline Your Data Entry
Streamlining data entry involves automating as many processes as you can between your transactional data and your accounting program. If you use your business credit card rather than cash or debit transactions, you can usually download your records automatically into accounting software such as Quicken or QuickBooks, as American Express notes.
You can also integrate your point-of-sales system in a similar way. This will bring all of your transactional information into your core accounting program without the need for a bookkeeper, which will both cut your costs and lower the chances of error.
Use Expensify to Log Your Finances Accurately
As a small business owner, it can be very easy to start mixing your personal finances with your business finances. Sometimes it may even seem like a no-brainer. Unfortunately, mixing your finances makes it very difficult to keep your books, and if you don’t sort things out properly it may also make your financial statements inaccurate. Legally, mixing your personal and business finances can also be dangerous as it will blur the line between your personal and business assets in the event that your business falls into debt.
To avoid confusion by using expense reporting applications like Expensify (Expensify.com), which log your transactions immediately. This will lower confusion when you go to reconcile your accounts, as by then you probably won’t remember which transactions were personal and which were related to the company.
Use inDinero to Consolidate Your Finances
Many small business owners fall into the trap of trying to micromanage their finances a little too much, and this just adds complications. It’s very likely that all you need is a checking account, a savings account and a single credit card to run your business. Despite this, many small business owners will open an operating account, payroll account, inventory account, spending account, cash account and more out of a misguided need to partition their finances.
All this really does is make sure that you’ll need to transfer funds every time you want to do anything substantial which will make it harder for you to track your finances. You can use services such as inDinero (inDinero.com) to combine all of your accounts into a single system for better tracking and better cash management.
Use Apptivo to Get It All on the Cloud
If you’re interested in leveraging technology to help organize your business, Apptivo is an excellent start. Apptivo connects business owners to dozens of applications through a cloud platform. These applications include time sheets, project management, invoicing and customer resource management platforms.
This cloud system can help with lead management, procurement and contact storing. It provides a very simple and easy way for business owners to experiment with new applications to find the ones that fit into their business. The app is free to try.