They say that a good recipe starts with great fresh ingredients, right?
Well, it’s the same with your business – if you want to create solid profit-making strategies, you need to start with clean up-to-date data.
And one of those essential data “ingredients” is your business expenses. Think about it this way:
You wouldn’t make burgers for your family with expired meat and moldy buns, right?
Your business deserves better than moldy old data, too!
So, here’s 3 tips to help you manage your expenses in a “fresh” way that leads to more profitable strategies:
Tip #𝟭 – 𝗕𝗲 𝗖𝗼𝗻𝘀𝗶𝘀𝘁𝗲𝗻𝘁
Two of the fastest ways to muddy a financial report is (1) duplicate expense accounts and (2) inconsistent categorization.
Think about it – how can you track your expense patterns over time if you pick (or create!) a different expense category every month for your car insurance payment?
One way to help this is to have a lean Chart of Accounts (avoid the temptation to set up a million sub-sub-accounts!)
And always look back to how you categorized it before so you can put it in the same category again (Tip: Try looking first at the transaction history under the vendor!)
Tip #𝟮 – 𝗨𝘀𝗲 𝗔𝘂𝘁𝗼𝗺𝗮𝘁𝗶𝗼𝗻 𝗧𝗼𝗼𝗹𝘀
Whenever possible, try to eliminate human error, whether that’s from manually typing in data or guessing at the expense category.
Tip #𝟯 – 𝗥𝗲𝗰𝗼𝗻𝗰𝗶𝗹𝗲 𝗠𝗼𝗻𝘁𝗵𝗹𝘆
It’s always better to categorize your expenses while you can still remember what they are (because, honestly, who remembers what that Amazon purchase for $14.27 was from 11 months ago??)
Easily make the most of every possible tax deduction
Compare your monthly and yearly financial reports, spot patterns (and problems!) at-a-glance and generally turn that fresh juicy data into some tasty real-world profit-making business strategies.
Now – what about you? Are you using “fresh” data for your business? … Orrr have your buns gotten a little bit moldy?
Now – are you thinking: “No problem, I can handle that!” … or are you panicking about how far behind you are?
If you’re in group two, no worries! We always help our clients keep their data fresh and organized – and we’d love to help you, too!
Contact us today! www.chooseabacus.com • firstname.lastname@example.org • (352) 432-8104
Kerry Postel – Founder CEO Principal
Abacus Business Solutions
Has Higher National Diploma in Business and Finance, Certified in QuickBooks, Member of American Institute of Bookkeepers, and over 20 years of bookkeeping experience including construction, travel, restaurants, events management, and other various professional services.
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