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How to keep track of business finances

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Keeping track of your business finances can seem daunting, but it doesn’t have to be! There are a number of ways to stay on top of your finances and ensure that your business is running smoothly. Let’s break down a few key tips on how to keep track of business finances.

1. Understand Where Your Money is Coming From and Going To

The first step in keeping track of your business finances is understanding where your money is coming from and going to. This may seem like a no-brainer, but it’s important to take some time to sit down and track your income and expenses. This will give you a good starting point for understanding your financial situation and where you can make changes or improvement.

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2. Create a Budget and Stick to It

Once you have a good understanding of where your money is coming from and going to, you can start to create a budget. A budget will help you keep track of your spending and ensure that you are using your money in the most efficient way possible. It’s important to stick to your budget as closely as possible; if you find that you are regularly overspending in one area, it may be time to make some changes.

3. Keep Detailed Records

Another important tip for keeping track of your business finances is to keep detailed records. This means tracking not only your income and expenses, but also any loans or investments you have made. Having detailed records will help you stay organized and on top of your finances; it will also be helpful if you ever need to reference these records for tax purposes or other reasons.

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4. Utilize Financial Software or Services

Utilizing financial software or services can also be helpful when keeping track of your business finances. These tools can automate many of the tasks associated with finance tracking, freeing up your time to focus on other aspects of running your business. Financial software can also provide valuable insights and reports that can help you make informed decisions about your finances.  If you’re not sure where to start, there are many different finance tracking tools available online; some are even free!

5. Hire a Professional

If managing your business finances yourself seems like too much work or you’re just not sure where to start, hiring a professional can be a great solution. A professional accountant or bookkeeper can handle all aspects of finance tracking for you, ensuring that all of your bases are covered. This option can be especially helpful if you have complex financial needs or are looking for more comprehensive reports and analysis.

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Managing your business finances doesn’t have to be difficult or time-consuming! By following these tips, you can easily keep track of all aspects of your finances, freeing up time to focus on other areas of running your business! 

If you need improved financial results immediately, watch our three-part series on how to create financial stability now and improve profitability for the long term.