The overview of finances should also be a matter of course for owners of micro and small businesses. But this also includes coordinated and fixed work processes that are consistently adhered to. What sounds simple in the beginning is often not so simple in everyday life. Procrastination goes faster than doing it and the payment request that has just arrived ends up in an unsorted pile of "to do" on the desk. Entrepreneurs who work with a system and structure save time and maintain an overview – an essential building block for business success. We have put together four tips for small and micro entrepreneurs to get their finances in order in the long term.
Tip 1 – Routine and defined filing systems help even those who don't want to be organized
The time savings of a clear archiving structure with fixed times for accounting is enormous. Routine is especially necessary to keep things tidy. Scheduling a bank day per week and a month-end close in the agenda gives structure to the bookkeeping. Entrepreneurs who do not have a monthly bookkeeping, fly blindly and have no overview of the current status or any additional payments to the tax authorities or health insurance. The perfect basis for a quick monthly closing: all income and expenses must be verifiable with receipts. It goes even faster if the receipts are sorted from the beginning by turnover and type of issue.
Tip 2 – Digitizing the documents
Like all entrepreneurs, small business owners also face the challenge of bringing digital records and paper records together. To control the chaos of the unsorted piles, fixed locations are needed for the documents. Tip:All paper documents must be available digitally. I.e.: paper documents must be scanned and archived. Do not throw away the paper originals. Storage baskets, archive folders or sorting folders are the ideal solution for the interim storage of paper documents in everyday life before they are processed or scanned. For long-term archiving, additional folders are necessary in which the publications are divided into fixed categories.
Tip 3 – Digital tools save time
Digital tools are essential for good finances – especially for entrepreneurs and the self-employed. The following is recommended: If possible, use only one tool that meets individual functionality needs. In the field of accounting, there are very different, modern accounting systems on the market. If you don't want to keep a cash book or offer hygienically safe payment methods, you should switch to cashless payment transactions if you haven't already done so and possibly even use additional integrated accounting and payment options.
Tip 4 – Bills for personal and business use
Particularly for small and very small businesses, it is often easier to process business payments from time to time through the private account. However, for accounting purposes it makes more sense to separate private and business expenses. All business payments must also be processed through business accounts. This also includes accounts that are separately managed by a credit card or digital payment provider. Hint: Business and personal payments should be kept separate. This isn't a huge hassle and ultimately pays off the billing.
