One of the questions I get asked most by new bloggers is how to keep their business finances organized. I have a lot to say on this topic because it’s something I had to learn myself the hard way. Let’s be real, no one really teaches you how to do this and sometimes it’s all about learning from experience.
That being said, I’d like you to avoid some of the mistakes I made on my own journey. Here are some tips for keeping your business finances organized.
Incorporate your business.
I started freelancing in 2010 but didn’t incorporate until 2013. Yikes. First, incorporation provides a legal separation between you and your business. Second, it forces you to organize your business finances. For example, you need to open a business checking account. In order to do that, you will need to provide the bank with specific documents.
Create separate banking accounts.
In order to keep your business finances organized, you need to keep them separated. The last thing you should be doing is dumping all the money you make from your business in a personal account. This comingling can lead to confusion – especially come tax time.
Here’s what you need to stay organized:
- Separate bank accounts for business
- A separate debit or credit card that is only to be used for business expenses
- Download the smartphone app for both accounts
That’s really it. It’s not any more complicated than that. The hardest part is remembering to use the business account when you’re not used to it yet.
Set aside time each week to review business finances.
Just like you need to review your personal finances, you also need to review your business finances. Make sure to set aside time on your calendar to review the money you have coming and the money you have coming out. You may also need to set aside time each quarter to see if your tax situation has changed.
This is extremely important for running a profitable business so make sure it’s on your list of priorities. The last thing you want is to turn a blind eye to the business finances. This is where things can get real ugly real fast.
Set a goal for each day.
The same way you set productivity goals for the day, you can also do the same for financial goals. For example, you can decide to meet a specific revenue goal each day. This will actually help you create a schedule to meet those goals. (Or, at the very least, equating my work to dollar signs helps me prioritize.)
For example, if I say I want to make $500 in revenue each day then I need to create my schedule accordingly. That means I’m focusing on pitching articles and actions that directly lead to sales. Those things must be done first. Everything else comes later.
Keeping your business finances organized is an integral part of running a successful business. If you feel like you can’t do it all yourself, then find help from a licensed professional. However, even still, you must make the time to review the finances on a regular basis.