To effectively manage a business, one needs to be more intelligent and smarter than just hardworking! Implementing some simple techniques correctly makes it much easier to keep track of daily income and expenses in business. And maintaining daily updated accounts means keeping monthly income and expense records accurate. Moreover, having accurate monthly income and expense records means keeping the business dynamic and progressing towards achieving larger goals.
Today, let's discuss some techniques for keeping track of daily and monthly income and expenses in business up-to-date. We'll focus on some small matters that we often overlook or don't pay much attention to. So, let's learn a few techniques for keeping track of daily income and expenses in business up-to-date.
This blog contains-
Thirteen techniques for keeping track of daily income and expenses.
When running a business, just as there are financial aspects, there are also skills required in certain areas. Each business owner has different techniques for keeping track of daily income and expenses. Some may require more work, while others may require less. However, adhering to certain principles makes it much easier for you to maintain your business's daily or monthly income and expense records. And these principles are applicable to all business owners.
01. Maintain separate bank accounts for company income and expenses.
When starting a business, it's essential to open a separate bank account dedicated to keeping track of the company's income and expenses right from the outset. Those who haven't done so yet should quickly take this step. Because to manage daily income and expenses, it's crucial to have a specific banking arrangement. Only then can you maintain monthly income and expense records. At the end of each month, you'll be able to analyze the types and amounts of transactions. Here are some things to keep in mind:
- Keep personal and business accounts separate. Never conduct business transactions through personal accounts.
- Avoid using business accounts for personal reasons.
- Ensure you open the account at a reputable bank that offers good services and conveniences.
- Review your bank statement at least once a month and reconcile the transactions.
02. Invest in software to manage daily income and expenses.
At the beginning of your business venture, another task to prioritize is to start using accounting software to keep track of daily or monthly income and expenses. This investment will pay off over time, making it much easier for you to manage your business operations.
Choose the most straightforward and user-friendly accounting app available in the country to keep track of daily income and expenses. One such app is HishabPati. Find out why you should choose the "HishabPati" app to manage your business accounts.
03. You need to keep track of daily or monthly business expenses.
Start keeping track of expenses alongside your business sales. Record all expenses, whether they are small or large, related to business operations. From transportation costs to employee salaries, record everything and review it. Many people don't separate business expenses for accounting. Remember, this is also an investment for you! By accounting for expenses, managing daily income and expenses becomes easier. And by managing daily income and expenses, you'll have a clear understanding of your monthly income and expenses. To learn more, read about how you can increase profits by reducing costs in small businesses.
04. Save daily expense receipts or invoices.
You might be thinking, why bother saving so many expense receipts or invoices and how to do it? But to be successful, you must save daily expense receipts or invoices. Because they are essential when accounting for monthly income and expenses. And how to do it? In this digital age, why keep paper invoices? Keep a digital copy or scan paper copies.
05. Digital Invoicing for Keeping Track of Daily Income and Expenses.
Dealing with paper invoices, receipts, or bills for receipt and storage is quite cumbersome. That's why it's time to start digital invoicing. Use accounting apps that offer invoicing features. Also, keep in mind that the invoicing software you choose should be suitable for your needs. Learn how to select a good invoicing software from here - Do These 7 Features Exist in Your Invoicing Software?
06. Keep track of the shop's due
Keeping track of outstanding accounts, especially for small businesses or corner shops, is crucial. Because some businesses heavily rely on outstanding payments. If the outstanding accounts of the shop are not recorded accurately, there is a higher chance of significant losses for the business.
Outstanding accounts for small businesses may involve small amounts individually, but their cumulative impact can be substantial. Therefore, it's essential to adhere to the rules of managing accounts for corner shops and keep a close eye on outstanding debts. Learn how to reduce outstanding dues for small businesses from here - 7 Effective Ways to Collect Small Business Dues
07. Maintain control over business receivables.
In business, just as there are accounts receivable or outstanding balances, there are also accounts payable or amounts owed. You either owe someone or someone owes you. It's a continuous process. Especially in managing accounts for corner shops, much depends on these receivables and payables.
What you need to do is maintain control over your business receivables and payables. Just as excessive outstanding balances or debts are not good signs in a corner shop, neither are outstanding payments or receivables. So, keep a close eye on both, and it's essential to use accounting software specifically tailored for corner shops..
08. To know monthly income and expenses, check the bank statement.
Make it a habit to review your bank statement at least once a month and analyze it. This will give you an idea of your monthly income and expenses. If there are any sudden significant changes in any month, try to understand the reasons behind them. Keeping track of your monthly income and expenses will help you in preparing your business budget.
09. Install accounting software on your mobile.
Start using accounting software for your business and make sure to install the software on your mobile device. Choose an app for accounting that can be used on mobile devices. For this purpose, you may prefer the HishabPati app. HishabPati mobile app where you can start updating your accounts regularly. learn more about the app, read about HishabPati: Mobile Accounting App for Business
10. Record and review monthly income and expenses.
At the end of each month, start reviewing or analyzing your business's monthly income and expenses. Simply recording daily or monthly income and expenses won't be enough to yield results. To achieve that, it's necessary to review or analyze regularly. Allocate some time each month to review. See how many new ideas you can discover and how much unnecessary expenditure you can reduce.
11. Every day, make it a habit to check your inventory at least once.
Develop the habit of checking inventory daily. Managing stock or inventory is a significant challenge. It's best if your accounting app has inventory management features, like the HishabPati app provides. Learn more about it HishabPati: Managing business Accounts and Inventory all in one app!
12. Try to do the daily accounts every day.
Keeping track of daily income and expenses is undoubtedly challenging. However, if you can manage to do this task, you will relieve yourself from many troubles. Give it a try once, and you may develop a habit. Once the habit is formed, it won't feel like a hassle anymore!
13. You should get used to using digital tools.
Try to keep yourself updated with time. Don't get overwhelmed by using any digital tool related to your business. Give it a try, if it doesn't work out, try something else! Using apps for accounting, digital invoicing, inventory management software, HR management software, etc., is the demand of the hour. If you lag behind, you'll be left out! To know what type of tools can help you, read about 5 Essential Apps for Startup Businesses
Not saying that you have to adopt all these skills from today. But if you want to increase your business profit, try to follow them. You'll see that your daily income and expenditure are up-to-date. And because your daily income and expenditure are up-to-date, your monthly income and expenditure are also up-to-date.
