Keeping Track!
By B. Scott Binion, CPA
You hear it from your accountant. Your financial planner keeps asking for it. Your banker really wants to know. Asking for what? They want to know that you are keeping track of your business and personal financial affairs. Are you asking yourself the same question?
Imagine if your bills were paid without knowing what the account balance was! What if you overpaid the bank loan or your copier lease - again? A $49 dollar late fee for paying a credit card late!!!!!
The following tips are for those that this has happened before. Keeping track of where you are is more important than that next deal or sale, no matter how big the deal may be. These may be simple on the outside, but pack a huge return over time. We’d all be surprised of how many are not even given a second thought.
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Keep a physical list or ledger of your checking account – even if you have an accounting system
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Always have envelopes available for expenses paid for using your own cash
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Reconcile your accounts shortly after receiving your bank statement
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Create an accounting of ALL of your transactions
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If you are too busy, don’t know how, or just don’t want to mess with it, hire a bookkeeper
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Outsourcing may be a lot less than you actually expect
So listen to your CPA. Take the advice of your financial planner. Take notes when your banker makes this request. Next time they ask, you can say YES, I keep very good track of my financial affairs – Want to see my books?