• About
  • Contact
  • Advertise
  • Resources

No Passive Income

Take Action, Build Your Business!

  • Small Business
  • Personal Finance
  • Online Marketing
  • Social Media
  • Blogging
  • SEO
  • Tools & Resources

6 Tips to Keep Your Small Business Finances in Order

June 10, 2020 By admin

If you’re a small business owner, you might feel a little overwhelmed by the prospect of keeping your company finances organized. There’s payroll, your invoices, expenses, receipts, travel costs, insurance, rent, utilities, etc. And those are just a few of the different moving financial pieces you may need to monitor as a business owner. Not to mention, you have to figure out how to do your taxes and file them properly every April if you don’t rely on a CPA. With all that said, there are many steps you can take to organize your finances, prepare your paperwork for tax season, and keep the books balanced. Keep reading below to learn the best way to organize your finances.  

 

Table of Contents

  • 1. Keep your personal and business finances separate 
  • 2. Choose great accounting software  
  • 3. Hire a professional accountant or bookkeeper 
  • 4. Stay organized 
  • 5. Create and stick to a budget 
  • 6. Automate payroll  
    • Wait! Before You Go, Read:

1. Keep your personal and business finances separate 

When you mix your personal and business financial information, you can create a real mess for yourself. At the end of the year, you’ll have to manually sort through all the expense reports and receipts to determine if a lunch was a business meeting or just a personal expenditure, for instance. Although it’s easy to charge everything to one card, tracking your spending becomes nearly impossible. 

Open up a separate bank account and credit card for your business that you use solely for company spending. Not only will this better help you monitor your company spending, but it will also make your taxes at the end of the year significantly easier. Plus, when you review your credit card or bank account statements, you know you’re only looking at your business expenses, without having to manually subtract personal costs. 

You can even use wealth management services if you need help figuring out how much money you should invest back in your business versus stable stocks or in your retirement portfolio. 

 

2. Choose great accounting software  

Not all accounting software is created equally. When it comes to the right one for your business, choose the kind that makes the most sense for your company. Your first step should be moving all of your financial company data from desktop files to a cloud-based server. Cloud software gives you the ability to monitor your finances with more security and file back-ups.  

 

3. Hire a professional accountant or bookkeeper 

Even if you understand the basics of accounting, you may not want to spend the majority of your time crunching numbers. It may help to hire an outside professional to balance the books for you. Make sure you take the time to actually vet your bookkeeper to make sure they’re qualified and understand your company fully.  

Although it’s true that hiring another employee is a cost that you’ll need to weigh, they can end up saving you money in the long run. With a pro on staff, you’ll have more time to focus on business-critical tasks. 

 

4. Stay organized 

If your receipts end up in a mountainous pile somewhere in your office, that’s a recipe for disaster. Make sure you digitize and file away receipts in addition to other important financial paperwork. Keeping your documents in order can help you better understand the context of your business finances and allow you make better company decisions. 

 

5. Create and stick to a budget 

One of the best ways to stay organized with your finances and prepare for the future is by creating a strict budget. Although some people view this step as unnecessary, it can be a tool for keeping you accountable and help you make strong financial decisions.  

When you make your budget, don’t think of it as a strict rulebook that you have to play by – simply use it as a basic framework for managing your company cash flow.  

 

6. Automate payroll  

Opting to use automated payroll software can free up serious back office time. After all, you don’t want to be bogged down with paperwork when you’re a small business owner. It’s important that you actually prioritize your time so that you focus on running your business. 

Takeaways: Keeping your business finances organized and tidy 

As a business owner, you have a lot on your plate. Your first priority might not always be related to your business finances and keeping your company’s expenses properly organized. But with the steps outlined in this article, you can ensure that your business has the right financial framework to be successful. 


Infographic created by Mowery & Schoenfeld

Wait! Before You Go, Read:

Five Ways to Turn Your Business Around 3 Simple Reasons Why Working Remotely Can Increase Your Productivity How to Make Money as a Food Blogger How These Tools Can Help You With Personal Finance Management Stop Your Best Employees Leaving Your Business Small-Business Sales Tips to Follow for Increased Revenue Today How to Become a More Accomplished Project Manager 4 Reasons Why You Should Seek the Services of A Web Development Agency Is Passive Income Easy w/ AI Tools To Enhance Your Writing? 10 Best Prop Trading Firms for Aspiring Traders 20 Retirement Tips for a Happy Life Knowing These 3 Line of Credit Options: Do You Know How to Use It Your Advantage? How to Choose the Best Budgeting App For You Speed, Anonymity, and Security: Why Crypto is the Future of Online Gambling According to dappGambl The Advantages of Pursuing College Studies from Home The Importance of CCTV Camera Systems in Business Security Plans How Small Businesses And Startups Can Find And Approach Clients On Linkedin A Guide to Dealing with Insurance Adjusters During a Personal Injury Claim Avoid 4 WordPress Mistakes Which Make Your Website Unsafe to Hackers 5 Tips For Increasing Your Store’s Sales SeedingUp: The Content Marketing Platform for Blog Monetization and Brand Awareness 🍂 100+ Best Autumn Captions for Instagram 🍁 Default ThumbnailEssential Ways To Save Money As An Ecommerce Business Succession Planning: What Principles May Go Wrong How To Take a Backup of a Website: Best Free WordPress Backup Plugins

Filed Under: Small Business Tips Tagged With: management, small business

Comments

  1. Newton Onukwusi says

    June 10, 2020 at 11:29 pm

    Wow thank you for this amazing finance tips

  2. Lisa Sicard says

    June 12, 2020 at 5:26 pm

    Hi Erik, staying organized is key! I find if I don’t, things go awry rather quickly. Also having a budget is another great way to stay on top of expenses. It’s the only way. Thanks for the great tips and have a nice weekend.

  3. Ryan Biddulph says

    July 10, 2020 at 9:07 pm

    Hi Erik,

    Good deal here buddy. Remaining organized makes all the difference in the world. The key is to set a basic business plan, stay within your budget, and document everything for easier reference down the road. Expenses, profits, all that good stuff.

    Ryan

  4. Sayane says

    July 13, 2021 at 2:10 am

    Creating and sticking to a budget is really important, because if you constantly keep changing you could have some financial troubles

Search

Recent Posts

  • 70 Top Painful Captions for Instagram 🤕🌧️
  • Which Distribution Software Is Right for You?
  • What Travel Tips Can Make Your First Dubai Business Trip More Successful?
  • 100+ Best Instagram Captions for August 🌞 🏖️
  • How to Set Blank Status on WhatsApp?
  • How Entrepreneurs Are Automating Growth and Results
  • Quick Borrowing Options to Help with Financial Gaps
  • Best Online Tools For Creating Blank Text, Zero-Width Spaces & Hidden Messages
  • 70 Best Facebook Bio Ideas for Bloggers (for 2025)
  • +90 BEST Walking Captions for Instagram (For Daily Walks)
  • 7 Signs You Need an Accountant for Your Business
  • How Collective42 Drives Growth Within the Manufacturing Industry
  • The Emotional Toll Of A Negative Money Mindset
  • Signs You Might Need a Bankruptcy Lawyer Sooner Than You Think
  • 5 Outdated Marketing Tactics You Should Ditch Immediately

Archives

Copyright © 2025 NoPassiveIncome - Privacy & Disclosure Policy