Wondering about your business expenses, how to invest and manage your business finances? Nothing to worry, you are not the only one stuck in this conundrum. It’s always huge to maintain your expenses when all you can think about is how to manage all you are spending and everything you already spent.

Managing finances in business requires careful planning, budgeting, and tracking of income and expenses, which can be simplified with the help of accounting software or a financial professional. It is substantial to find an accountant for handling and bookkeeping all your finances but sometimes it is difficult to find one who fits into your. The reason may be the limited money you want to hire an accountant or the lacking skills in each one you hired or at least tried. Here’s a list of some of the “to do” essentials you can always shoulder on when you don’t have an accountant.

Tips To Manage Finances Without Hiring An Accountant

1. Get Familiar with Business Terms

We know it’s a daunting task but when you decide to dive into your financial management task yourself, you need to learn the basic concepts. There are times when the buzzwords like gross revenue, expenses, net profit, and cash flow sound horrific even before you find the solution. So, having a brief knowledge of the accounting world will help you find the answers and save you the charges of hiring an accountant. Moreover, a little extra knowledge never harms.

2. Separate Personal Account From Business Account

We all have faced a situation where we pay the bill with our business card for personal use instead of the personal account. But this is not acceptable when you are talking about managing your finances. The single-handed rule to save your business finances is to separate your personal and business stuff, whether it’s your credit card, debit card, online accounts or anything.

By separating the accounts you will be crystal clear about your expenditure and the mode of how you invest. To separate both accounts, you can keep all your business belongings to your office or less often carry your business cards. No magic will save your finances other than the distinction of your business and personal accounts.

3. Rely More on Accounting Software

Accounting and finance management is a tough task, you can use smart solutions rather than bragging about the old methods. You can use accounting software that offers multiple purposes rather than keeping records in your old storage room. Accounting software can help you in performing financial transactions easily as well as storing the records for the future. Moreover, you are not obliged to make any physical effort to maintain the software. Work smart, not hard.

Some of the popular accounting software in the market are QuickBooks Online, QuickBooks Desktop, FreshBooks, Xero, and Sage.

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4. Monitor Every Penny You Spend

Do you know what else can save you from that regular money squandering? Monitoring. Before you blame yourself for extra spending every time, question yourself if you monitored what you spend each day. None of us do this and this is one of the reasons why we lack managing the expenses.

Henc, monitor and keep a track of the daily essentials you spend on. Besides, try saving a bit if you spend on unessential things. If you run a business, track your employees if they are wasting office property. You can ask them not to use extra sheets, stop wasting the print-out papers if unnecessary. This will help you to manage your finances at the year-end calculations.

5. Timely Payment of Bills

Paying bills on time is crucial to financial management. Late payments can result in late fees, interest charges, and credit score damage. Setting reminders helps you pay your bills on time. You can set up automatic payments with your bank or service provider, use a calendar, or use an app. Automatic payments let you schedule payments in advance so you don’t forget to pay bills. To avoid overdraft fees and other issues, monitor your bank account to ensure payments are processed correctly. Paying your bills on time can help you get loans, credit cards, and other financial products and avoid late fees.

6. Opt for Cloud Accounting Solutions

Managing your business on the cloud is the best way to keep up with your finances. You can ease your workload as cloud accounting solutions offer multi-user accessibility and remote access to all your data which results in maintaining the books of accounts on-the-go using the internet. Will it harm if you are updated with the latest features to manage all your accounting needs? That’s what cloud accounting solutions are for. They make the work easy, save time and help in increasing productivity.

You can choose to use Cloud accounting solutions if you want flexibility, better collaborations as well as integrations with the third-party. Some of the in-built cloud based accounting solutions for managing finances are QuickBooks online, Xero, Sage Business Cloud Accounting, FreshBooks, Wave and Zoho Books.  Moreover, you can choose to host desktop based accounting software like Sage and QuickBooks on the cloud to avail all the cloud solutions.

You may also see: How Does Cloud Accounting Transform The Role Of Bookkeeping

Summing Up

If we hire a personal accountant, they can help us create a comprehensive financial plan, but as individuals, we are more aware of our essential expenses and spending habits. However, professional expertise may still be necessary for complex financial situations.

Moreover, you are self-capable of handling all your finances and that’s something you should be reminding yourself every day. After following all the tasks mentioned above, you will be sure to make no mistakes in the future. You can ease up your management job with small steps like less cash flow, monitoring expenses, and less-traditional ways.

FAQs

How can I manage my business finances effectively?

To manage your business finances effectively, you need to separate your personal and business finances, track your income and expenses, create a budget, pay yourself a salary, manage your cash flow, and regularly review your financial statements. You can also use accounting software like QuickBooks to simplify and streamline your financial management.

Can I use QuickBooks for my personal finances?

Yes, QuickBooks can be used for managing personal finances. It offers features like tracking income and expenses, managing bank accounts, generating reports and  creating budgets that can help in personal financial management. While it is technically possible to use QuickBooks for personal finances, it is not recommended if you are tight on the budget.