manage money, If you are an entrepreneur and you have a small business you have some issues like accounting and tax.
Planning these things makes the process less daunting. Let’s see how you can do this:
First of all, you need to separate business and personal finances.
When you combine these funds, your accounting is going to be more complicated. It is easier when you open a business bank account and take it from your personal finances. Records are more accurate.
You don’t need to choose a bank because a fintech company will handle your personal banking.
Save your receipts
It is important to save all documentation about your transactions. It is easy and helpful for you when you do face an audit. Especially, when you don’t know which category the expense goes under.
Categorize your transactions every week
Run your bookkeeping on autopilot, it’s important to check it regularly. This helps you to run a business accurately, be informed. Why it is a good option to categorize transactions? The benefits of categorizing transactions are using expenses to reduce taxes, protecting business, and understanding cash flow. Doing it every week is simpler than doing it monthly for example.
Taxes are often not a good surprise. But it is a way to prepare like to write off business-related expenses. How does it work? While spending money for your business, you need to deduct the amount from taxable income. So you only pay taxes on your profit.
Follow your money
Cash flow challenges can cause the failure of your business. But it is important to be sure that incomes bigger than outgoing.
Minimize your risks and detail records
To sum it up, categorizing transactions is necessary to measure for being on top.
Your Business manage money Management tool allows you to view your finances and business activities, all from the secure setting of your Collect&Pay account.
In Collect&Pay it is easy for you to manage all your transactions in one place including a business bank account, debit card, and processing online.