When you’re running a business, it’s only natural to focus on the money that’s coming in. But as any business owner knows, that’s only one half of the equation.
Keeping track of spending, and knowing where the money goes is equally important, and can give you a clear picture of your overall financial position.
The good news is, it’s relatively easy to stay on top of business spending. Here are a few ideas to get you started.
Separate business and personal expenses
It’s important to make sure you can identify your business expenses from your personal spending so it will make it a lot simpler when tax time comes around.
By having separate business accounts such as a Business Transaction Account or a Business Credit Card, you will be able to sort out your business-related expenses as well as your deductibles at end of financial year. You can also get a complete snapshot of your finances by viewing both your business and personal transaction accounts side-by-side in NetBank.
Use online tools to keep track
The great thing about technology is that it makes it easier to stay on top of your expenses. If you want help keeping track, use tools such as MySpend, which gives you complete visibility of your monthly spending across all your CommBank accounts, including your business accounts.
You can group your business spending into categories like ‘payroll’ or ‘stock purchases’ to help see exactly where the money is going ― and pinpoint unnecessary expenses. MySpend can also help make tax time a breeze, letting you mark any tax-related transactions for easy reference later down the track.
In NetBank you can easily export transactions to your business accounting software such as Quicken, Xero, MYOB and Microsoft Excel. This will help track your business spend and identify any shortfalls straight away, so you can take steps to get your cash flow back on track.
Do a regular check-in
It’s a good idea to take regular stock of all your incomings and outgoings, no matter if you do this weekly, monthly or quarterly. This way, you can check in to see whether you’re sticking to the budget you have for your business.
Start the year with some good habits and it’ll help you stay on track with your business. If you need advice on assessing your current financial situation, visit your nearest branch for a free Financial Health Check.