“As the owner of your business, you are the key to its success,” says Mark Digney, CGA. Mark should know, not only does he advise small business owners from his Williams Lake office, he is also owner and president of Digney & Co. Keeping organized, up-to-date financial records contributes to this success.
Applying the following pointers on a weekly basis will create orderly, useful records that will help you better understand your business’s financial position.
1. Keep your books current. “Keep a set of books, keep it current and keep it to a point where you can read your reports,” says Mark. Try setting aside a specific time in your work day for daily and weekly bookkeeping. At the end of each week, complete the tasks necessary to know your reconciled bank balances.
2. Know your cash flow. Take the time to calculate your weekly sales and weekly payments. “You should know your cash position—your bank balance and what’s coming up for receivables and payables—at all times,” notes Mark.
Read more from Small Business BC