There's nothing more important than keeping records. Track everything. Classify everything. Your money is your money and your business money is not yours. The way I'd do it after tracking all the expenses and incomes is: - Assign a fixed salary for you. When you receive an income from your business, I know, you can fall in the temptation of spending everything. Having a fixed salary will make you feel like an employee and you will know how much is your personal budget is separated from your business budget. - Create a new bank account. If you have the same account for your personal expenses and business expenses, you won't control your earnings. - Have a different credit card. Dedicate a credit card to your business. - Be disciplined. The statements above are good, but if you don't limit yourself to separate your incomes and expenses, they won't work.
Report David's answer
- First realise that revenue is not profit.
- Ensure you first decide how much you want to invest.
- Then start spending from that investment.
- Unplanned business expenses has to be recorded as and when they happen and ensure you take that back from the set aside corpus. Else without realising, lot of spend will go un noticed and you will not have clear picture of profit or loss at the end of year.
- Do not hesitate to spens at the time of need. But meticulously Track Every Penny.
Report Ragavendra's answer
One of the simplest tools to achieve your objective is a credit card.
Establish one for your business and never use it for personal expenses. Use the business card records to feed your enterprise accounting system and your tax returns.
Report Kenneth's answer
King, hi. You must separate them otherwise your business will continue suffering. To that end you have tools: financial software, checking accounts, credit cards, and so on. You should discuss this important topic with your accountant before to proceed, so both can coordinate bookkeeping and taxes reports. I wish you the best.