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10 Easy Ways To Organize Your Business Finances

Whether you are a new entrepreneur or a more experienced

business owner, taking control of your finances can feel like a

part-time job. Some simple tips can help you streamline your

time, organize your finances and reduce the stress of business

money matters.

1. Keep Your Bills in One Place

When the mail comes, make sure it goes in one place. Misplaced

bills can be the cause of unwanted late fees and can damage your

credit rating. Whether it's a drawer, a box, or a file, be

consistent. Size is also important. If you get a lot of mail,

use an area that won't get filled up too quickly.

2. Pay Your Bills on Schedule

Bill paying can be simplified if it's done at scheduled times

during the month. Depending on how many bills you receive, you

can establish set times each month when none of your bills will

be late. If you're paying bills as you receive them, chances are

you're spending too much time in front of the checkbook.

Although bills may state "Payable Upon Receipt", there's always

a grace period. Call the creditor to find out when they need to

receive payment before the bill is considered late.

3. Read Your Credit Card Statements

Most people take advantage of low interest credit card offers

but never read their statements when paying the bill. Credit

cards are notorious for using low interest as bait for new

customers then switching to higher rates after a few months.

Make a habit of looking at your statement carefully to see what

interest rate you are paying each month and if any transaction

fees have been applied. If the rate increases or a transaction

fee appears on your statement, a simple call to the credit card

company can oftentimes be beneficial in resolving the matter. If

not, try to switch your money to a more favorable rate.

4. Take Advantage of Automatic Payments

Most banks offer a way to automatically deduct money from your

account to pay creditors. In addition, the creditors usually

offer a lower interest rate when you sign up for this payment

option because they get their money faster and on-time. Consider

it as one fewer check to write, envelope to lick and stamp to

buy. Just make sure you record the deduction when the automatic

payment is scheduled or you run the risk of bouncing other

checks.

5. Computerize Your Checkbook

Using a software program is a handy way to organize your

finances. Whether it's Quicken(r), Microsoft Money(r) or another

package, these easy-to-use programs make bill paying and bank

reconciliation a cinch. Computer checks can be ordered almost

anywhere and fit right into most printers. Once the checks are

printed, all of the information is automatically recorded in

your electronic checkbook. Furthermore, many banks have direct

downloads into these software packages so when money is

deposited or withdrawn, the transaction is entered immediately

onto your computer. And, when it comes time to do taxes, it

couldn't be easier.

6. Get Overdraft Protection

Most banks have a service where, if you run the risk of bouncing

a check, the money will come from another source. For a nominal

fee, the bank will link your checking account to either a

savings, money market, or credit card so the embarrassment of

bouncing a check will be avoided. Call or visit your bank to

learn about this convenient feature.

7. Cancel Unused Accounts

Whether it's a credit card or bank account, write a letter

requesting that the account is formally closed. Not only will

this improve your credit score, it is a useful way to avoid

money from being scattered all over the place. Don't let

department stores and credit card companies lure you into

opening new accounts by offering favorable interest rates and

purchase discounts. It's easy for credit to get out of hand by

taking advantage of every credit offer that comes your way.

8. Consolidate Your Accounts

If you have several credit card accounts with outstanding

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balances, try to consolidate them into one. Be careful and check

the balance transfer interest rates and one-time fees. Also,

make a list of all your open Money Markets, Savings, CDs, IRAs,

Mutual Funds, and other accounts to see if any consolidation can

be done. Keeping your money in fewer places eliminates all of

the guesswork involved and reduces errors.

9. Establish Automatic Savings

Create a link from your checking account into a savings account

that will not be touched. This can usually be done through the

banks and automatic amounts will be transferred over each month.

Most people will not put money into a savings account on a

regular basis. They may wait until a large tax refund check

arrives or some other event to actually deposit money into

savings, retirement or other accounts. If you establish an

automatic savings deposit every month, your accounts will begin

accumulating money faster than you think.

10. Clean up Your Files

Make sure your paid bills are organized in a filing cabinet.

Keep individual files for paid bills. Go through your files at

the end of each year and throw out bills and receipts no longer

needed for auditing purposes. Contact your local IRS office to

see how long records need to be kept for audits. Usually federal

tax return audits can be done three years back but cancelled

checks may need to be kept for seven. Consult the Internet for

auditing and records-keeping procedures for your state or region.

(c) 2005 DebtGuru.com(r). This article may be freely distributed

as long as the signature file and active link are included.

About the author:

Michael G. Peterson is the Vice President of American Credit

Foundation, an IRS 501 (c)(3) non-profit consumer credit

counseling organization that has assisted thousands of

individuals and families with their financial situations through

seminars, education, counseling services, and, debt management

plans. For more information, and free consumer resources visit

http://www.debtguru.com.