5 Tips for Organizing Your Business Finances

Brook Winings DSC_9883 social

No matter the business model, finances are critical for success. But there’s more to your business’s financial success than just bringing in money. How you plan, track, file {aka organize} your finances plays a huge role in laying a strong foundation for growth. 

Too often, I see entrepreneurs shy away from the task of organizing their finances. I get it. It can seem overwhelming, especially if numbers aren’t in your wheelhouse. And even if you are numbers savvy, finances are a whole other ballgame. However, the longer you put it off, the more you're costing yourself in the long run…and the harder it will be to clean up the mess when you do finally "get around to it". 

Here are five simple tips to help any small business owner tackle the organization of their finances. 


1. Keep Things Separate 

You mix so much of yourself with your business ~ values, mission, and personality. Which is great! But one thing you definitely don’t want to mix are personal and business finances. Separate those two ASAP. 

Your business should have its own bank account. Not only does this make tracking income and expenses easier, but it also simplifies things from a tax standpoint.

Pro Tip: Create a separate Amazon account for your business too…it’ll make it easier to track those expenses and just keep it cleaner. Plus, your Amazon business account may be eligible for a sales tax exemption.


2. Schedule Time

As a business owner {and mom, wife, friend...insert ALL the titles here}, my schedule is critical. It’s how I keep focused and prevent things from slipping through the cracks. That’s why it’s important to put time on your calendar to dive in and organize your finances. 

Then, have a regular time block on your schedule to keep things organized. It might be monthly, or even weekly depending on your needs. Trust me, it’s easier to maintain organized finances than to continually reorganize them from a state of crazy ~ you know, like right before tax time every single year. 


3. Create a Filing System 

You’ll make the most of your scheduled finance time if you have a clear system in place. To make your finances easy to navigate, you’ll want to have a system for the following: 

  • Bookkeeping records (invoices, receipts, etc.) 
  • Bank statements
  • Contracts
  • Employee/contractor records
  • Vendor records
  • Tax documents


4. Choose Your Tools

Pen and paper definitely have a place in your business…and sometimes I start there when it comes to helping clients create their first budget, but I don’t recommend it for organizing your finances for the long term. Choosing the right {digital} tools will simplify your life and finances making you all the more efficient! 

Work smarter, not harder.

From accounting to invoicing to payroll, the right tech makes a world of difference. Personally, I use Quickbooks Online for all my bookkeeping needs. It keeps everything really well organized, easily accessible, and makes for less stress during tax season {looking to move to QBO to manage your biz finances, here's a link for 50% off}. 


5. Bring in an Expert

The truth is organizing finances {or organizing in general} isn’t everyone’s strong suit. If that's the case for you {or] if you just have too much on your plate already, it might be time to bring in reinforcements. 

Outside support can come in various forms, from one-off clean-up assistance, to more mid to long-term support such as hiring a bookkeeper, or maybe a business or financial consultant. This brings fresh eyes to your finances to help you clean up existing systems and implement more efficient new ones. On the other hand, if you’re looking for someone with extensive expertise and to act as more of a high-touch support system, you may want to consider bringing on an interim COO or fractional CFO.  These executive-level roles organize the back end of your business, be it operations and/or finances. 

Stop wondering where your hard-earned money went and start telling it where to go!


BIZ CONNECTION: Does your business need some help with cleaning up your books to start the New Year off on the right foot? Check out our friends at Quarter One Club and tell them AD+AD sent you.