Accounting is not everyone's strong point, but as a founder, you're going to need to learn the necessary skills to keep your business running smoothly. We asked five entrepreneurs how they keep their finances organized for their company and personal life.
Using Online Services
I have accounts for my personal accounting and my business on Mint.com. It allows you to add all cash, credit, loans and investments and automatically itemizes and categorizes to easily download to Excel for additional analytics. You can add notes, filter, re-label, etc. It makes it easy to read, hand off to the accountant, and saves time when trying to figure out any financial questions.
– Jessica Baker of Aligned Signs
Though it can be tough, keeping a weekly schedule to review transactions helps you recall the reason for a purchase for quicker categorization, which makes your life easier towards year end and quarterly reviews. For business, I use QuickBooks online to track multiple checking and saving accounts. You can easily provide company executives and your accountant access to run reports.
– O. Liam Wright of True Interaction
Separate Business and Personal
The best advice I can give anyone is to keep track of every single purchase you make with even a vague connection to your business. Also, keep your personal and business accounts separate wherever possible. I've seen too many entrepreneurs whose financials are a confusing mess simply because they buy dinner and groceries with their business account.
– Steven Buchwald of Buchwald & Associates
Using Different Accounts
I have a separate credit card for my personal and business purchases. Online purchases usually let you choose payment options so I can pick the credit card that it should reflect. This allows me to avoid putting the wrong purchase in the wrong category.
– Ajmal Salem of Suprex Learning
Hiring an Accountant
We have an accountant who checks our books, credit card purchases, checks, EFTs and automatic bill payments a few times a month. That way we always have a second set of eyes outside of the company looking over our numbers to make sure nothing is amiss.
– Ben Walker of TransOutsourcing