And the results are in. Here are some hot financial tips from biz moms who participated in our #bizmomsknow chat on March 21st.
1. Make sure to have an orderly filing system set up.
Assign a filing cabinet or box for each biz, and one for personal accounts.
Divide the cabinet drawer into general sections and then into categories – house, cars, health, money, etc.
Create one filing folder for each expense and sale type – income, expenses, credit cards, etc.
2. Track your expenses.
Buy a receipt scanner for instant records.
Enter details of each expense into your accounting software.
Enter details of each personal expense into a spreadsheet like Excel.
Save all receipts over $75. Receipts under that have been unnecessary for IRS checks since 1996.
Mint.com is a free personal finance service from Inuit that might also be helpful.
3. Invest in good accounting software.
Biz Moms Know recommends Quicken and QuickBooks. Be sure to get the version that fits your type of biz.
Create all your invoices through your software, if a current version. If not, we recommend curdbee.com — very clean and easy to use.
There are categories for every type of expense in the software, which makes for easy reporting each quarter and at tax time. It also makes it easy to create a budget based on hard numbers.
4. Reconcile bank accounts and expenses in software once a month.
There is no worse headache than the one you’ll have at year’s end if you don’t.
5. Have a separate bank account and credit card for each biz.
You can track everything better.
Try not to mix personal and biz purchases and deposits. If you do, enter all your biz expenses into your accounting software regularly before you forget their details.
6. Pick your preferred payment methods.
We recommend checks, PayPal, Chase QuickPay, and customer-to-customer bank bill pay.
Checks have no fees but can take time to deposit.
Digital payments have fees and can take time to clear and withdraw.
Chase QuickPay users have to register before using the system.
iPhones can download apps for taking credit card payments.
7. Get a professional of professional software to do your yearly taxes.
Turbotax is a great way to get all deductions; be sure to buy the right version for your business type.
Turbotax online will carry over all your information from the year before and enter it automatically.
Our next #bizmomsknow chat is on Wednesday April 4th at 12 noon EST. Join us as we talk about content strategy with the queen of content: Becky Cortino.