Keeping Track of Your Finances During Difficult Times

One of the important things I learned from my mother who owns a fruit store is you list down everything that goes in and out of the store. That means you need to record things such as:

 

• How much merchandise you have already sold,
• How much money you have earned from those products
• Your expenses

 

Why should you keep track of these details?

 

Why Keep a Record of the Flow of Money in Your Business

 

Here’s why accurate recordkeeping is so important:

 

• You would know if your investment is going in the right places. Putting money into your business is like planting a seed in the ground. You want to make sure that the money you invest will bear fruit, such as a bigger business or more money.

 

• You can keep track of where your money is going. By keeping a record of your finances, you are able to control the outflow of money in your business. This prevents you from spending money on things that don’t have anything to do with your business.

 

• You can allocate funds for other investments. An opportunity to grow your business may suddenly appear out of the blue. But before you grab such an opportunity, you need to know whether you have the money for it,

 

It’s also important to get outside help, if you need it.

 

Hiring a Bookkeeper: Why It Matters

 

To keep track of the flow of the money in and out of your business, you need to hire a bookkeeper. So how exactly does a bookkeeper help you in your business?

 

• A bookkeeper does the financial tracking for you. Because a bookkeeper takes care of writing down the money that goes in and out of your business, you can focus more on the other aspects of your business, such as planning and attending to the needs of your clients. All you need to do is review what the bookkeeper has recorded for the day.

 

• A bookkeeper does the financial analysis for you. Sometimes, there are so many things in your business that need your attention that you don’t have time to check whether you’re already losing money. No need for you to worry, because your bookkeeper would tell you if your money is starting to go down the drain.

 

• A bookkeeper helps you make important decisions in your business. Since the bookkeeper is the one who sees how money flows in and out of your business, he or she can help you make crucial business decisions.

 

Bookkeepers free up your time, so you can make the important financial decisions using accurate data.

 

Know Your Statistics

 

Aside from keeping track of how much money goes in and out of your business, you should also check out reliable wildfire statistics that might affect your business in one way or the other. When you do, you are able to make the necessary adjustments in your business activities.

 

When you are able to monitor how money flows in and out of your business, you are able to stay on top of the situation. You can decide when to put more money into the business and when not to. This way, you avoid unnecessary losses and keep your business afloat, even in the most difficult situations.

 

 

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Good luck!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) https://www.accountingaccidentally.com/