Handle your finances like following a diet

If your business finances need organizing, be sure to handle them like someone going on a diet. Little decisions help us lose or manage our weight and the same principle applies to getting your bookkeeping in order.

Step 1 Create folders

Separate receipts in the current month according to your spending categories. Take an envelope and mark it “travel/meals” for any travel-related expenses. Make an envelope in the same category for the coming month and then place the envelopes in designated folders.

Step 2 Use a bookkeeping ledger – either paper or online

For the busy individual business owner, starting a company or running an established company means receipts can get in disarray. Buy a ledger from an office supply store. Dome makes an easy-to-use ledger or begin implementing a Web-based solution from Zoho.com or Freshbooks.

Start with the present date in entering expenses and income.

Step 3 Set aside 30 minutes each week for finances

Block out the time just like you would for an important meeting. A Friday may be a logical time—or else Saturday morning from 9 to 9:30. Whenever you do it, be committed to spending 30 minutes once a week to tidy up your books.

If you need to hire a bookkeeper, you can use this free test from the American Institute of Professional Bookkeepers. The test is for companies using an accrual system. http://www.aipb.org/testrequest.php

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Handle your finances like following a diet

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