Wednesday, July 04, 2007

Controlling Your Home Business Expenses

Controlling your business expenses is important to keep your business in the right track. If you happen to be engage in a home business that requires you purchase large amount of supplies, you need to have a system to track down purchases and other expenses. To do this, you might want to get one of those computer accounting programs. The good thing about using a computer program to record all your transactions is that it is easier to use and is more likely to be accurate than recording your transactions manually.

Organizing Your Records

Your computer accounting program will not be able to help you if you can not keep track of all your transactions. To keep track of your business dealings, always keep the receipts of all your purchases. You might want to buy a binder where you can keep all your receipts and your bills. Be sure to keep all your bills and receipts in a safe place where you can easily find them when you need to check something. When keeping track of your inventory, it would be a good idea to input all your incoming supplies in your computer and then update it regularly.

If you are selling goods, you might want to get one of those computer programs that will automatically update your inventory files as soon as you sell something. Tracking the levels of your inventory is very important so that you will able to gauge when you should order for more inventory. Always remember that when you are selling goods, you must always have enough supply to offer to your customers.

Keep track of all your accounts payable by keeping a record. Make a schedule of your payables so that you will not be overwhelmed with all the bills at the beginning or at the end of the month. For instance, if you purchase your goods on a term, make sure that you schedule your other payables in such a way that it will not fall on the same dates. If you are scheduled to pay your utilities during the first week of the month, you might want to schedule your other payables somewhere in the middle part of the month so that you will have enough time to accumulate funds.

When scheduling your payables, you might want to keep separate envelopes for each payable. Make sure that money that is intended to pay for certain payables are not used for other purposes. For instances, if you have money set aside to pay for your supplies, that money should never be used to pay for the amortization. Once you start mixing up your funds and using them for different purposes other than what they were originally intended, you may not be able to replenish it fast enough to beat the billing period.

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1 comment:

KA® said...

awww man ... thanks for the tips .... i've blogmarked your blog as i intend to learn more :)