| It is essential to keep your accounts books up to date, | | | | forgot to pay. If the payment have been received |
| if you run a small business. You should update your | | | | from the customer, always remember to record them. |
| books on regular basis as soon as the transaction has | | | | Customer feels offended when they receive another |
| got completed. One simple data creates huge disaster, | | | | invoice for the same payment even after they made |
| if you forget to record them. Hence, following the | | | | payment. Hence, it is important to maintain a up to date |
| below rules would help you to avoid the last hours | | | | records. |
| tension of filing the tax or preparing the financial | | | | Rule 3: |
| documents. | | | | Keep comparing the income and expenses: |
| Rule 1: | | | | The earnings should be more when it compared to the |
| Keep track of your expenses: | | | | expenses.Then only we can say that the business is |
| Keep hold of all the receipts of the purchase you | | | | profitable. Hence, you should keep comparing the |
| made. Create an effective system to sort receipts | | | | income and the expenses on a regular basis. It could |
| according to the date, function and details.You can use | | | | be monthly or weekly or daily but it should be regular. |
| those receipts for future reference if needed. Keep | | | | This will help you to avoid the unwanted |
| them in to your accounts books and record the details | | | | expenses.Also you can implement any changes that |
| in ledger. This will hep you to understand the expenses | | | | would brings more income. |
| you made and you can justify the purpose of the | | | | Rule 4: |
| expenses whether it is really required. Also this could | | | | Observe cash flow: |
| help you to avoid the unnecessary expenses in the | | | | Be aware of your income and the expenses so that |
| future also. | | | | you can balance the short falls with the tap into other |
| Rule 2: | | | | resources and you can cover it. This will give you the |
| Track the debt details: | | | | idea of when the customer makes the payment. You |
| Bill your customers promptly on a specific date and | | | | can rearrange the policies or even charges so that |
| provide them deadlines to make the payment. Keep | | | | they will be able to make payments on time. |
| track of who owes you money and send a reminder | | | | By following these rules you will be able to keep a tidy |
| on a particular date asking them to make payment. | | | | accounting records which will also helps you to |
| Many small business owner has stories about the | | | | increase your income and reduce the unnecessary |
| mislaid bills or they may have lost the invoices. Finally, | | | | expenditure. |
| the customers will be surprised to understand that they | | | | |