We at Limitless Business Avenue partners with quite a lot of SMEs and new entrepreneurs.
Today we discus five main routines and tasks that we always recommend them to perform on a daily basis to ensure at the end of the month, they are not lost among the volume of transactions and numbers that cannot be reconciled.
1. Record daily expenses and revenues
Our first tip of the day is to ensure recording your daily expenses and revenue at the end of each day. This is especially when you deal with cash or low amount transaction.
It is very common among new young entrepreneurs to be lost in the questions “where I spent this amount of money” and “who gave an AED 5,000!?”
2. Monitor and amount for inventory
When you are dealing with actual goods and selling them on a daily basis, it is imperative to know at the end of each day what is your inventory.
Tackling the next day with the proper inventory ensures your business continuity and thus customers satisfaction.
3. Monitor daily bank transactions
Who from us went through his or her bank statement and wondered who sent me AED 350 to my account and for what?
Monitoring this on a daily basis can ease your life (or your accountant life) by being able to trace all your ins and outs.
4. Perform a backup of accounting records and soft documents
We will share with you a true story here. Two years ago, we established our server and emails with a third-party firm. After six months of operations, we received an email that the firm had some technical issues and all their servers and backups are non-recoverable.
We lost clients’ data and quite a lot of working papers.
No matter how big your service provider’s name is, please ensure you do you own backup plan if not on a daily basis, then on a weekly basis max.
5. Separate daily personal expenses from company’s expenses
Ensure there is a clear separation and most importantly do not use your personal bank account for work related transactions and vis versa.
At the end of this blog, we wish you a successful year a head full of compliance and organization.
Your True Business Partner