1. Keep Your Business and Personal Finances Separate: When operating a business you should establish separate bank accounts and credit cards in the names of the business, keeping all personal purchases separate for business purchases. The most important reason for doing this is to have a clear record to refer to when it is time to have your business taxes prepared. Keep track of all the money that you spend related to the business (example: rent, electricity, supplies, purchases) because many of these items can be deducted from your business taxes.
2. Collect Money From Clients Quickly: Once you have delivered your product or service to your client, you are owed money (if it is not collected at the time of sale). It is important for you to collect that money as soon as possible. Create bills (also called invoices) for clients and send them out regularly until you receive the entire amount owed to your business.
3. Spend Your Money Slowly: It is important to pay bills on time, but take advantage of payment periods and pay bills the last day or two that they are due. Avoid employee advances (early wage payments or draws against wages owed), unless your business can truly afford it. This technique allows your business to have cash in the bank longer and available for other necessary items.  
4. Limit Your Inventory: Your inventory is the actual product that you sell. It is important to try to anticipate your clients’ needs and demand for inventory. If you have too much inventory it may spoil, go out of

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1. Keep a Record of Money Received: Keep a strict record off all the money your business receives. Take detailed notes on a daily, weekly and monthly basis indicating where the money came from and when it was received, or use an accounting software product to track the money in your business.
2. Keep a Record of all Expenses: Regular expenses like rent and utilities, along with irregular expenses like equipment purchases, need to be recorded. The records should indicate what the money was spent on, who the check was written to, the check number, and the date. Again, this can also be managed in bookkeeping software.
3. Employee Payment Record: You should keep a dated list of all pay given to your employees and for

1. Keep an Updated & Balanced Checking Account: You should have a separate checking account established for your business. Regularly go through your checkbook register and balance it. To balance your checkbook make sure you record all transactions as they happen. Record your current balance. When your bank statement arrives compare items and balance stated from the bank. Your bank balance may appear to be higher, but this could be due to clients or vendors not yet cashing checks that you have written. If you are regularly tracking your balance in your checkbook register, then your correct balance will be reflected there.
2. Consider Hiring a Professional Accountant or Bookkeeper: It is important to select a professional who familiar with your type of business. A good accountant or bookkeeper will be able to help your business pay bills owed, send bills due to business and collect unpaid money from customers, keep records needed for taxes, and advise you on daily cash management.

The Basics of Booking

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119 North Commercial Street, Suite 195 Bellingham, WA 98225-4455 phone: (360) 733-4014    fax: (360) 733-5092 www.cevforbusiness.com