Ever ask yourself: Where is all of my money going? You might be surprised once you sit down and map out what you spend in a month. On a weekly occurrence, you may think it’s fine to eat out or grab a coffee on the way into work, however if you add up the amount you spent on eating out or coffee in a month, the total amount might surprise you.
To keep track of your money on a personal basis, we recommend using the app Mint by Intuit. It records and tracks your expenses, and allows you to set budgeted amounts each month for different categories. The app will notify you when you reach your limit and tells you how much money you have left to spend on a specific category. It will also chart your expenses by categorizes so you can see how much you are spending on one area. By tracking what you spend on a daily basis, it can help you set aside money for savings or help you determine what you need to cut back spending on.
On the business side, having your chart of accounts set up correctly and utilizing a good accountant are important for tracking your expenses. For example if you sell software, you could create an account called software, but what if you want to track what type of software is selling the most. You could break out the software account into: accounting software, security software, etc. to track items better.
When you have a good quality accountant, they will address these important issues and will help you pinpoint where you are making money and where you are spending money that might not be beneficial to the company’s success. If your ready to have an experienced accountant help you with your business needs, reach out to CFO 4 Your Biz today.