Benefits of Daily Accounting
Daily accounting…what a burden? Or, what a salvation?
Running a home-based business has many challenges since most days you wear all the hats! You’re the manager, the marketing director, the CEO, the hourly worker, the vision, and of course the accountant. Some home businesses do hire out for some of the above duties, but most find them cost-prohibitive.
Accounting is one area that a person does not want to fall behind on. Missing several days or a couple of weeks of sending invoices and entering debits and credits can create a financial hardship.
I strive to take 5 to 15 minutes each day to do daily accounting tasks. This includes entering and sending invoices, entering debit receipts, recording deposits, and prepping checks for statements as they come in.
The benefits of doing this always allow you to have an accurate knowledge of the balance in your accounts, the amount of your accounts receivable, and the amounts of accounts payable. Even though you are not going to know the amounts to the penny, you will have more confidence in knowing what you are going out to do each day. Concerns over insufficient funds, collecting debts, and overdue accounts are reduced.
It is easy in our busy lives to not take this time, but I encourage you to strive for this. You will be blessed about how a few minutes a day reduces the overall stress in our lives.
What does your stay-at-home business accounting look like? What tips can you share with our other readers?
Contributed by Jessica Clemens