As any entrepreneur knows, the lifeblood of any business is not just the money that pours in, but the kind of name your work makes. Honor is an unacknowledged business license. A tarnished name will guarantee a company's fall faster than the lack of money will do. To keep a good name, one has to meet expectations in terms of work. Another important aspect of this is the capability to honor commitments. Keeping payment records efficiently can help a business handle commitments like payments. This simple guide will help you organize payments for your home business:
- Just like in the books, have folders for Expenses and Accounts Receivable. In your Expenses folder, keep the receipts of any cost you paid from company funds. The Accounts Receivable on the other hand will compile your copies of the receipts you provided for your customers. This will make it easy for your accountant. What makes it easy for your accountant makes it also faster for him to go home. This will in turn save you money.
- Make a file for your major customers. To efficiently handle any transaction and research on anything of importance during their business with you, it would be wise to accumulate files for each of them.
- Automate your financial processes. Buy a desktop computer and balance your earnings over your expenses. This will help you reduce clutter in your environment and make it more conducive for productivity. It will also reduce your cost in terms of the amount of paper you will need to process your transactions.
- Move your transactions to the web. Manage your business bank account through online banking. You can also setup a website advertising your home business. Creating a PayPal account and setting up a credit card facility in your site will also reduce paperwork done in your home.
- Buy a safe to keep important papers related to your business like loan approval certificates and licenses. You can also keep any petty cash there instead of having it lying around. Try to make sure that the safe is fire-proof and burglary-proof.
- Account the expenditures of your business in spreadsheet applications. This is to make sure that your business is profitable and is not taking too much out of your personal nest egg. Make sure you track your business's progress on a weekly to a monthly basis. It would be like watching a baby with a sonogram.
- Keep your records in an organized and accessible place so that they will be easily reached when the Internal Revenue Service comes knocking down your door.
By organizing your home office payment records, you actually take control of where your business is going in financial terms. The rein of each business rests in its management. Management decisions come from numbers. A view if your business is sinking in the reds or rolling in the greens will allow tactical decisions on your part and a sense of accomplishment when the numbers are good.