For a business owner, the list of things to do may seem endless. A lot of responsibility rests on your shoulders – especially when it comes to the profitability of your business. When you have a list as long as yours organization is imperative. However, the idea of actually getting organized may feel like a task for your to-do list in itself.
We recommend that when it comes to getting organized you start slowly – and with the most important part: your expenses. Keeping track of your business expenses is one of the most effective ways to stay on top of the profitability of your business. The more you are aware of what you are spending, how that compares to what you are making, and how much profit you are taking in, the better you can set goals and run your business efficiently.
If you do not have a system in place already, getting started is easier than you may think.
- Categorize all of your business expenses. (For example: rent, utilities, merchandise, salary to employees, misc. expenses)
- Organize all of the business receipts and other financial records into those categories you have set up
- Create your own paper or computerized ledger to keep track of those expenses –if you write them down as they happen, you are less likely to forget, and more likely to have an accurate listing
- Determine your own business accounting periods – aside from the federal and state ones you must abide by—and during that time you can choose to review and balance your ledger for each period
And remember, you can set goals based on this information. Share all of the details with the people directly responsible for the profits you take in and allow them to use it as motivation for their sales goals, too!