I get it you would rather scrub dried paint out of the carpet then add up all those expense receipts you have laying around.
Here is the deal though in order to have a profitable business you HAVE TO know your numbers. I totally understand that this is easier said then done, but don't worry I am not going to leave you hanging.
Here are Five important Elements of getting your business finances in order
1. Register your business with your state and local offices to insure that you are operating within the law and requirements for your area
2. Keep all personal and business money separate
3. Track all income, YES even the cash!
4. Track all expenses, I have some helpful tools for this and will explain more further down
5. Hire an accountant, CPA, Tax professional to help you file your business. I promise you it is worth it!
It can be overwhelming, I know! There will be days when you wondering if you are screwing it all up and yes there will be some days that sure enough you are. But there will be days that you kill it!
Tracking expense is overwhelming I know, So here are a few tips that make it just a little easier.
- Break it down, Don't try to organize everything at one time. Maybe start with all your material expenses.
- Create a system for how you will organize your receipts after you have calculated them and a place to store you them before you have calculated them.
- Check out this helpful excel expense tracker, it is a little less overwhelming then some accounting software and alot more affordable.