Having and using book-keeping software is one big step towards good financial management. You also need to know what to do with the physical receipts you gather so here’s an outline of a simple process:
Goal – don’t leave your data entry to a once a year or once a quarter task. DO IT WEEKLY OR MONTHLY.
- Keep all your receipts and whenever your purse or wallet becomes too full go through them and separate out the ones that were genuine business expenses
- If you will be cross-billing some of them to clients then write on these ones which project or client they refer to (if you leave this for weeks you will forget!)
- If some lack dates then write on them the date on which the expense was incurred
- In a perfect world you will now sit down and enter them into MyCake!
- In a real world at least pile them up on your desk. When the pile falls over it is telling you that it’s time to enter them into your book-keeping software …. take the hint!
- The book-keeping software will give you a number for the expense as you enter it onto the system (MyCake ones start KF…. and it comes as a pop-up once you’ve saved the details of the purchase). Write this number onto the receipt
- Staple your receipts onto A4 sheets of paper and put these (in roughly chronological order) into a ring binder
- You might also keep bank statements, credit card bills, contracts and other financial correspondence in this file so that you can hand the whole lot to your accountant (or if you do your own tax returns then it will already be in one place)