Updated: Apr 24
Money might always find a way to make it into every decision for your business, but how well do you know your money?
When it comes to business finances one might not take the role of Chief Financial Officer seriously when you also wear other hats as most entrepreneurs do. Naturally people much rather do what they enjoy.
None the less dollars matter and the decisions you make need to be based on sound judgement of your financial position. To get started, reconciling your bank and credit card statements are a must. If you make a cash deposit after selling a product or service, you need to know it got to its desired location, your bank account. Same holds true when you write a check or swipe a card, you want to make sure those accounts got paid. This is an easy way to familiarizing yourself with your money. Simply begin when you receive your next statement from your institution by matching your balance with the balance on the statement. Keep in mind unposted checks and transactions effect what the balance is at the end of the statement period and should be accounted for.
Starting with reconciliation would be like putting the steering wheel on the car to get you from point a to point b, it is necessary but much more is required to accomplish the task.
Check back next month for further insight!