Open up a separate business bank account.
Keeping your personal transactions separate from your business is key in making sure you are not mixing up the money that belongs to the business.
It is common for people to have personal transactions that are not related to their business, but are still necessary. The best way to keep these types of transactions separate is by opening a separate bank account.
Create a filing system for all receipts.
Creating a filing system for all receipts is the first step to achieving financial success. The goal of any filing system is to separate and store documents based on their relevance and importance.
While an empty shoebox is convenient, it’s not fireproof. Consider choosing an option where the receipts can be saved in a cloud-based software.
Choose a data entry software.
Many beginners use a product like Google Sheets. While this is not an accounting software, like QuickBooks, you may be able to find pre-made templates to help you organize your transactions if you are comfortable using this software.
Receive payments and pay your bills in a timely manner.
Making sure that your customers are sending their payments to you on time helps to improve your cash flow. Paying your bills on time helps your business relationships with the vendor.
Record your transactions regularly.
Set some time aside at least once a month to record all off the transactions. Separate them into categories. Setting up categories helps to keep track of which type of categories have the most expense.
This is also a great way to keep an eye on your transactions for any fraudulent charges.