7 important tips for managing a business by keeping track of income and expenses

01. Separate your personal spending from your business spending.

The first step to becoming a professional entrepreneur is to separate personal expenses from business expenses. Your entire business isn't yours alone, but the expenses related to your business are not personal. These should be recorded as investments or expenditures for the business. Similarly, all your personal expenses cannot be recorded as business expenses.
You'll only achieve accurate accounting for your business income and expenses when you manage to distinguish between personal and business expenditures. Failing to do so will never give you a clear financial picture of your business.
For example, use separate bank accounts for personal and business financial transactions. If not, keeping track of your business income and expenses will be nearly impossible!

02. Prepare a realistic budget for business management.

Running a business isn't just about buying and selling products; it involves various other steps. For example, marketing, branding, communication, customer support, office management, employee management, and more. Proper planning and financial budgeting are required for all these tasks. It means you need to have a budget for your business every year, month, or week. A realistic budget for business expenses will make managing your business easier and help you progress towards your goals.
With a business budget in place, you'll know how much to spend on each account and where to cut costs. Without this knowledge, you won't be able to manage your business income and expenses correctly. The budget will serve as your business's financial roadmap. HishabPatiapp for expense management and business reports can be useful for creating your business budget. It provides convenient features for tracking expenses and viewing business reports, which can greatly assist you in preparing your business budget.

03. Keep track of unpaid business debts.

Uncontrolled receivables and payables can undermine the accuracy of your income and expense records! This means that your accounts will lack completeness. Whether you purchase goods on credit or engage in transactions with customers on credit, it's crucial to maintain accurate records of all receivables and payables. If you can also control the outstanding balances, it will further simplify your business accounting.
Especially Strategies for collecting receivables in small businesses is necessary. Using HishabPati apps allows you to send messages about receivables and receive alerts for collections and payments.

04. Practice providing invoices for all transactions.

Practicing the habit of providing invoices for all transactions quickly establishes you as a professional in your field. It also helps reduce outstanding business debts. So, use an app where you can easily generate and print or share invoices. An invoice or bill is a professional document that emphasizes the importance of any transaction. Moreover, invoices serve as records for financial transactions, which are crucial for managing business income and expenses in the future.

05. Practice keeping track of business income and expenses daily.

Practice tracking your business finances daily, not just weekly or monthly. There's no alternative to accurately recording business income and expenses. That's why you need an app that makes your accounting tasks easy. For this purpose, the best solution is the accounting app 'HishabPati'!

06. Keep track of your business income and expenses digitally.

Many people keep track of their business accounts. But in 2024, where are they keeping track of their business income and expenses? This is now a crucial question in business management! It's time to bid farewell to the traditional method of tallying accounts in notebooks or diaries because, even if you want to, you can't maintain modern, accurate business accounts using traditional methods anymore. Yes, many people still keep their business accounts on laptops, computers, or cloud-based spreadsheets. However, none of these is now a realistic solution. Because -

Most businesses are now involved in online or e-commerce activities. As a result, new concepts such as delivery charges, various payment methods, 24-hour orders, online payments, various offers, cashback offers, discounts, etc., have been added to business income and expense calculations. Keeping business accounts is no longer as simple as it used to be.
Various taxes, VAT, and government fees have been added to every business transaction. Even the smallest transaction involves such payments.
In this age of globalization, business is now much more dynamic. Therefore, you won't spend the day sitting at home, sipping tea while calculating accounts on a table as you used to. Nowadays, the need to calculate accounts arises from anywhere.

Without worrying so much, ask yourself,  "Are you considering an accounting app?"  If the answer is yes, then consider keeping track of your business income and expenses digitally as an easy solution and this is the future!

07. Choose the right accounting software to keep track of income and expenses.

Now, to keep track of your business income and expenses, you need to choose the right accounting software. Start managing your business accounts with a specially designed, easy-to-use, and user-friendly accounting software or app. Before making a selection, you need to consider the following factors from a usability perspective:

• The interface and user experience of the app should be simple and intuitive, requiring no separate training to understand how to use it. Complex usability can make your accounting tasks more cumbersome.
• The accounting software should be available in both mobile and web versions.
• You should be able to manage all your business accounts, including income and expenses, directly from the mobile app.
• Ensure that all your business information remains secure, so cloud-based accounting software is essential.
• For Bangladeshi business owners who are more comfortable with the Bengali language, the app should offer options in both Bengali and English for ease of use.
• Consider whether the cost of the accounting software fits within your budget.

Here are the features to look for when choosing an accounting app:

• Debt and Receivable Tracking.
• Expense Management.
• Unlimited Product and Party Adding.
• Advantages of working in offline mode.
• Invoicing in Bengali and English.
• Colorful Invoice Templates.
• Inventory Management Solution.
• Various Reports on Demand.
• Billing Solutions for Transactions.
• Full Support for POS Software.
• Mobile Barcode Scanner.
• Customizable Product Units.
• Dedicated Customer Support Team.

"HishabPati" is an excellent accounting software for general businesses in Bangladesh. You can confidently use this app to manage your business's income and expenses. In addition to all the mentioned practical features and benefits, you will find many unique features in "HishabPati." Moreover, "HishabPati" is the most cost-effective accounting app in Bangladesh.