About This Episode
There’s no one-size-fits-all amount of time that you should spend on your business finances and the time spent may vary depending on the week, month and quarter. Today, we’re discussing what financial tasks you should tackle on a daily, weekly, and monthly basis and how to maximize your bookkeeping system.
Find out how to maximize your time and your finances!
What we’re talking about
- How Much Time Should I Spend On My Business Finances?
- How Do I Manage My Finances In Just 30 Minutes Per Week?
- Ways To Create A Finance Schedule
How Much Time Should I Spend On My Business Finances?
Realistically, you should expect to spend 30 minutes per week on your business finances.
Sometimes, there may be heavier weeks at:
- The end of month when you’re paying bills.
- The 1st of the month when you’re reconciling bank accounts and reviewing your numbers.
- The end of the quarter or year when preparing for your taxes.
Utilizing an integrated and automated system will allow you to spend just 30 min a week on your finances.
The easiest way to get to a goal of 30 minutes per week is to start by using digital bookkeeping software, like Quickbooks Online, Xero, or Wave. The reason digital bookkeeping systems reduce your bookkeeping time is that the software connects to your bank account and downloads your transactions.
- 50% recording transactions
- 50% categorizing the transactions
With bookkeeping software, the recording part is done for you, which reduces your bookkeeping time by 50%!
How Do I Manage My Finances In Just 30 Minutes Per Week?
What else can you do to reduce the amount of time on your bookkeeping?
Do a systems audit to figure out what tasks are taking you the longest and using up the most resources. Remember that resources are money but time and energy is also an important resource that you don’t want to waste. Then find ways to create systems to do those tasks more efficiently.
Ways To Create A Finance Schedule
Your schedule should include daily, weekly and monthly tasks. Write down the tasks that you’ll do and follow that checklist every single time you do your bookkeeping.
On a daily basis you should:
- Check your account balances. Know how much money you have and think about what expenses are coming up.
- If you keep paper receipts, clear them from your wallet and organize them.
- Open financial mail and deal with it.
- If you work hourly, track your billable hours.
- Invoice your clients.
- Log business mileage.
On a weekly basis you should:
- Record and categorize your income and expenses.
- Manage your bills.
- Deposit checks.
- Update your invoice tracking sheet.
- Send invoice reminders
On a monthly basis you should:
- Reconcile all of your accounts.
- Run and review your profit and loss statement.
- Look at your numbers for trends and patterns.
- Calculate your tax savings and transfer money to your savings account.
- Pay yourself.
- Update your home office tracker by logging expenses such as your internet and cell phone bills.
These are just a few of the tasks that you can do. Get my full bookkeeping task list by downloading the Biz Finance Survival Kit.
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