How To Save Money By Breaking Your Bad Bookkeeping Habits – Part 2
Last week we looked at some of the bookkeeping habits which could be costing you money. Today we have some more tips for you to think about.
Oh, and don’t underestimate the value of these tips. Most people overlook the steps which look simple without realising that often they are the key to success. Bookkeeping does not have to be complex to work. In fact, the opposite is true.
Time Is Money And The Clock Is Ticking!
If your bookkeeping system is not at least partially automated, you may often end up sending your invoices out late. When you send your invoices out late, you will then receive your payments late and the payments that you make to others will more than likely be late. This is very costly in that it can result in extra fees as well as damage your reputation and credit rating. While the tardiness of the white rabbit in Alice in Wonderland, led to the creation of a charming story, chasing payment is not the most efficient way to run a business. The word ‘stress’ leaps to mind straight away.
Make a very important date with yourself on a regular basis and stick to it to keep up with your books and send out invoices and payments in a timely manner.
The Time To Save Is Before You Are Broke
Do you know how much money is in your accounts? Do you know how much money will be going out and coming into those accounts over the next 30, 60, 90 days or more? Perhaps you just wait until you get notices from your bank about the account being overdrawn before you look at your books?
Ideally, you should reconcile your accounts while you still have money, and plan to add to your balances before you are overdrawn. By doing your accounts regularly and having a plan to save, you can be prepared for sudden expenses that might overdraw your accounts and cause extra fees.
The sun doesn’t shine every day and the rain also does not fall every day. By regularly checking your books you can make plans for both events so that you take full advantage of prosperous times and can weather any hard times in both your business and professional life. Waiting until you are broke to check your books is an almost certain guarantee that you will fail to reach your goals or full potential.
Over the last two posts we have shown you five of the most common bad bookkeeping habits that lead to financial ruin. By breaking these habits, you can make great strides in lowering your costs and increasing your savings so that you can achieve financial stability.