Five steps to organize your small business finances
Separate your accounts, record every payment and review your numbers each week. Here's how to start.
Keeping your numbers clear doesn't take complicated software or an accounting course. It takes a good habit and one place to write everything down. Here are five steps to start today.
1. Keep business and household money apart
Even as a freelancer, use one account for the business and another for personal spending. That way you know what your business really earns and avoid end-of-month surprises.
2. Record every payment the same day
A small expense you don't note today is forgotten tomorrow. Record it as soon as it happens and give it a category: rent, supplies, transport, utilities.
3. Invoice on time and follow up
Send your invoice or billing statement as soon as the work is done and note the due date. If a client is late, a friendly reminder is usually enough.
4. Review your numbers every week
Spend fifteen minutes each Monday looking at what came in, what went out and what's due soon. With that routine you spot tough months early.
5. Get ready for taxes now
Keep your receipts and check during the year whether you'll need to file income tax. Arriving with your numbers in order saves you time and stress.
You can do all of this in one place with miho. Create your free account and start with your first payment.