Some business owners view bookkeeping as a burdensome detraction from the important work of running their business. Creating even a small amount of time in your day on a regular basis may prevent backlogged accounting from getting out of control. Use an accounting-for-businesses software package to help you stay organized. Avoid using cash; use of credit cards, debit cards or on-line bill pay options will create a paper trail you can organize later. Scan receipts and invoices as you go, so organizing later isn’t a paper-intensive project. Hire a bookkeeper or a college accounting student to help you stay on track.
Spending money appropriately actually saves you money!
The fuel costs of running a bicycle average at $0/year. The fuel costs of running a car average in excess of $2400/year. That's quite a difference but imagine how much time your car saves you. Doing the school run, rushing to work or meeting friends. These are all jobs made easier thanks to your car. As expensive as it is, it is a worthy expense. The finance of your company is much the same. Just because something is expensive, it doesn't make it unnecessary. Prioritize by importance - not by price!
Healthy cash flow is the lifeblood of your business and it depends on prompt payments. Regardless of how you set up your payment terms, invoices are often paid two weeks late so if you aim to get paid in thirty days, make your payment terms around 15 days.
You need to do more than just sending an invoice. Set expectations with your clients before you start the work. List details clearly on your invoice and send it as soon as possible to the appropriate person or department.
Always keep detailed records of inventory and time and notify your client right away if there is a potential of going over budget.