Simplify Your Finances: Tips and Tricks for Small Business Owners

You have enough on your plate without having to worry about the ins and outs of your business finances. Recording what your money is doing isn’t nearly as fun as something like creating snazzy social media images or, you know, actually working on your core business. But as your business grows, keeping track of expenses, revenue, and tax filings is vital, and can become increasingly complicated. Fortunately, there are some tips and tricks you can use to simplify your finances and make your life as an entrepreneur easier, and make your accountant and/or bookkeeper’s lives easier, too!

Keep Your Personal and Business Finances Separate

One of the easiest ways to simplify your finances is to make sure you keep your personal and business finances separate. Set up a separate bank account for your business, and use it exclusively for business transactions. This will make bookkeeping and accounting much easier, and will also help you avoid any legal issues down the road.

Track Your Expenses

Keep track of every dollar you spend on your business. This will help you create an accurate budget, as well as make tax time less of a headache. Use accounting software or a spreadsheet to track your expenses, and make sure to save all receipts and invoices.

Embrace Technology

Technology has made it easier than ever to track your finances. There are a variety of tools and apps out there that can help you simplify your financial tracking. Consider using cloud accounting software like QuickBooks or Xero, or apps like Expensify or Shoeboxed to track expenses and receipts on the go.

Don’t Forget About Taxes

Make sure you stay on top of your tax filings as a small business owner. Keep track of all necessary forms and deadlines, and consider hiring a tax professional to help you navigate the process. Paying taxes may not be fun, but failing to do so can lead to penalties and legal issues.

Regularly Review Your Finances

Set aside time every week or month to review your finances. Check your bank balances, review your revenue and expenses, and make any necessary adjustments. Regularly reviewing your finances will help you stay on top of your business’s financial health and avoid any surprises down the road.

Tracking your finances as a small business owner doesn’t have to be a daunting task. By keeping your personal and business finances separate, tracking expenses, embracing technology, staying on top of taxes, and regularly reviewing your finances, you can simplify your financial tracking and make your life as a small business owner easier. With these tips and tricks in mind, you’ll be well on your way to financial success as a mom entrepreneur.