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3 Small Changes That Keep Your Financial Health In Check

3 Small Changes That Keep Your Financial Health In Check

For people who are not a fan of numbers, bookkeeping can be a daunting task. Taking bookkeeping for granted does not come as a surprise for business owners who do not have a proper bookkeeping system in place. Bookkeeping may only be a tiny fraction of your business, but it creates a serious impact on your financial when it is habitually ignored. Surprisingly, it does not take rocket science, but only some simple habits to ensure your financial health stays intact. 

1. Monitor your business expenses

It is easy to lose track of the money you are spending when you think that they will not seriously affect your cash flow. However, special events, travels and even lunches can accumulate. If you are going to check your tax records, you may be wondering why you have zero balance when you are only spending a minimal amount. Audit your expenses so you will know whether or not you are overspending. Aside from keeping financial details, you will also have to prepare audit. Making this a habit will ensure that you are not going to miss out any essential information. You will also have peace of mind as you know where money is spent. 

2. Put aside money for taxes

Delayed tax payment can result in incurring interest and penalties. Constant delays can affect your cash flow and instead of allocating money for paying your monthly bills, you end up using the money for penalties. The plan of expand your business needs to take a backseat as you need to prioritise tax payments. A simple neglect of tax payments can definitely hurt your business. Setting aside money for taxes can save you from these inconveniences and avoid paying unnecessary penalties. 

3. Track your invoices

As your business grows, you will need to monitor your clients including payments made and missed payments. Identifying the clients who have already made a payment and those who have not can be challenging without a bookkeeping system. When monitoring your invoices, make sure you have bookkeeping software that will be able to generate invoices and provide information of clients who have not yet made a payment. 

Tamara Deterding

Written by : Tamara Deterding

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