Track the Money Flowing In and Out of Your Business

adjFinancials_mThe ability to track money flowing in and out of your business is one of the most important parts of being a success. If you don’t know how much – or how quickly – money is leaving your business, you’re at serious risk of landing in a situation where there are no funds on hand when you need them to take advantage of an opportunity or pay what is due to a vendor. If you don’t know how much – or from what source – money is coming into your business, you may be in the happy position of having plenty of cash on hand, without a clear idea of which clients owe money and how long it has been due to you.

Tracking money flowing in and out of your company is also necessary if you are using budgets and forecasts to manage your growth. How will you know if you’re on track if you have no idea what you have? Similarly, how will you know you are behind – or ahead – of plan if you don’t know what’s going on with your company finances? The fact that you’ve taken the time to establish financial goals and benchmarks is not enough. You need to pay attention to how you are doing in comparison to those figures.

You could save up your receipts to add up once a month. You could write everything down on a sheet of ledger paper. You could worry yourself senseless by thinking about what you should be doing to track your finances as your business enters a growth spurt. All of those are certainly ways to deal with financial matters. Unfortunately, none of them brings you the information you need when you need it and in a form that is truly useful.

QuickBooks is the go to accounting package for small and growing businesses and has been for more than twenty years. The features vary by the version, with a versions available for every business from a newbie startup with one person to an established business with multiple locations and a weekly payroll to generate.

Future posts will describe the various versions and features available with QuickBooks. They’ll also discuss the ways you can customize QuickBooks for ease of data entry and meaningful output in the form of reports. An intro to financial statements – what they mean, how you can tell, and why you care – is also in the works.

Meet you back here!

Gina

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