KEEPING TRACK OF YOUR FINANCES

For business owners, the most important thing to remember when it comes to running your business is to document everything. From keeping receipts to processing the employee payroll, it all has to be written down or entered into a system and tracked to help you when it comes time to do things like pay taxes or project your cash flow.

Develop good habits around your bookkeeping and record keeping from the start so you can track the money coming in and going out of your business.

PEN, PAPER AND A SHOEBOX

Believe it or not, some small businesses still use this method, and if their business processes very few transactions, it’s just as effective as software. Just because a system is “old” doesn’t mean it won’t work.

You may not have the latest payment technology if you’re invoicing your customers or are being paid on the spot by cash or check. If this is the case, you’ll need to:

• Keep all your receipts, both for making and receiving payments.

• Track your past, present and future jobs in a receipt book.

• Maintain a written record of who your customers are, how often they call and how much they pay.

A Spreadsheet

A simple spreadsheet can be a good option when you’re just starting out and you’re trying to keep expenses low. As your business becomes more complicated, you can make the move to accounting software.

Using a spreadsheet allows you to:

• Create your own system to set up a budget and track invoicing.

• Share the records with your accountant in an organized way.

Accounting Software

If you’re serious about starting a business, it’s probably wise to subscribe to accounting software (many are free) that links to your bank account. It’s a foolproof way to document everything you need to collect, and you’ll reduce the risk of errors. Good software will do a lot of the thinking for you, with features to generate professional-looking invoices, keep track of who owes you money, help you enter everything accurately for your accountant at tax season and remind you when things are due. If you use cloud-based accounting software, you’ll gain benefits such as:

• Seeing all your accounts in realtime. The software will link to your bank account and display information all in one place inside the software.

• Increased security. In case of theft or a computer crash, your data is backed up in the cloud and your financial information will likely remain safe.

• Accessing your financial data anytime, anywhere with simply an internet connection on an enabled device.

Keeping Track Of Cash

Systems help identify trends that can help you make decisions and grow your business, such as:

• Which products and services generate most of your revenue.

• Which customers provide the bulk of your sales.

• Where your money is going and the highest costs.

• Who pays late and needs reminding.

• Which products have the best profit margin.

Understanding the cash trends of your business means you’re in a better position to improve your profit and can spot ways your business can improve.

Whichever method you use, a good system will allow you to make better decisions based on what’s happening in your business now and in the future.

Heritage Direct can help!

Heritage Direct, our business online banking software, is a great tool for keeping track of your finances. It allows you to see a holistic view of your business: payroll, balance and transaction reporting, recurring payments and transfers, ACH and wire payments, online statements, user accounts and more.

Not only that, but the interface is completely customizable, with drag and drop widgets that are tailored to each users’ unique needs. Widgets are small components that allow you to quickly see information or perform a variety of common tasks, like making a payment, transferring funds or placing a stop payment on a check.

Then, when a user downloads and opens the Heritage Direct mobile app, they’ll see the exact same personalized workspace as they do on their computer, a great feature for those small businesses who do most of their business on the go.

Other features include:

• Up to 365 days of balance and transaction reporting history

• Direct Connect with Quicken & QuickBooks

• Customizable security controls

• Single sign on for remote deposit capture—meaning no extra username or password to remember