In order to ensure financial growth you must keep track of all your financial budgets and forecasts. If you are doing a below average job with this, it is time to change.
We understand just how difficult business accounting is for some of you but that is absolutely no reason to avoid it. You must be able to polish your bookkeeping skills for financial growth and to keep a track of business loans in Kenya, if any.
To help you with this we have a few suggestions:
Have A Cash Box
This cash box will collect money for small purchases so that you don’t have to use your credit card for every single thing. In this box, start off with a small but substantial amount of money in coins or small bills. Use this money as and when needed for fun purchases and then write a receipt and put it in the box. When the money is spent, write a check and all the expenses will be fulfilled with ease.
Doing it everyday is much better than breaking your head with a month’s worth of records. In fact, some people do it once a year, spending too much time at once. This not just wastes a lot of time for no reason because you have to look back an entire year but it also gives you a headache and causes frustration. The chances of error are also higher in these cases. Thus, you should do it everyday and save yourself cumulative trouble.
Don’t Categorize Too Much
You don’t need to micromanage your expenses. Doing this will anyway affect you negatively. You should instead categorize only as much as needed – just enough to keep it clear. All stationery, for example, can be categorized under Office Supplies instead of breaking that into smaller categories.
Save Every Receipt
You must save every single receipt regardless of how small an amount it vouches. This will help you when there are doubts or errors. Also, if you don’t do this, you might lose expenses that can actually be written off with ease.
Have Separate Accounts
This will help you track all your expenses properly because your business will have its own credit card and checking account. Also, when you file taxes or if something goes wrong you can review the business account and clear things up.
Poor accounting directly speaks of poor leadership. Thus, you must roll up your socks and start taking these measures for clear bookkeeping.
Whether or not you like it or prefer to do it, you must maintain financial records to enable financial growth. Take small steps such as maintaining daily records, having separate accounts, and saving all receipts so that there is clarity and also so that you are saved of unnecessary headaches.