In the old days, mom & pop shops would keep the cash in an old coffee can somewhere under the counter. Whenever they needed something, they would just take a few bucks. Savvy shops might even leave a note saying how much they took.
This is NOT the model we’re going to be using.
3 Important Reasons Why You Must Keep Records
Keeping good financial records is pretty important. Here’s why:
- Getting Paid In Full—When you’ve got a full client load, its not really possible to remember who paid what and when. When you keep track, including check or credit card number, date of payment, and how much, you’ll be able to quickly see if someone is carrying a balance.
- Taxes—The government wants their appropriate share, and they don’t really make it optional. Every business has to pay taxes, and yours will be no exception.
- You’ve Got To Pay Yourself—You’re going to be moving money from your business account into your personal account. This is called “Getting paid”. Since you’re in business for yourself, the accounting software you use will make this much easier to keep track of. [Read more…]