HOW TO TAME THE PAPERWORK IN YOUR BUSINESS
Why you need to get your records straight?
So that you are at a Known Financial Position (KFP) and you can be an informed entrepreneur and know where you are at the glance of a simple report
You feel less stressed at the dreaded tax time and know where all your paperwork is.
C.A.L.M Money Management stands for:
1. Capturing the data with a simple record keeping system, electronically or with physical files, the choice is yours
2. Accurate accounting system set-up that keeps you informed to make better business decisions
3. Learning to love & understand your numbers that come from the accounting system
4. Managing your cash flow so that you can pay your bills and create financial freedom
So in this post we will touch on the C from the C.A.L.M process
CAPTURING THE DATA
It’s the step BEFORE bookkeeping
There as many ways to do this as there are fish in the sea, which one will suit you depends on how tech savvy you are or whether you would you rather be able to see and touch your paperwork in physical folders.
This post will focus on a paperless or electronic record keeping system
I love Evernote
For tech lovers, I love Evernote, why? Simply because your financial data is coming from a multiple of sources; receipts can still come in by hand from cafes and stationers but you will also be gathering receipts and bills from emails and other online sources like online banking.
Evernote enables you to easily capture all of these into one electronic notebook so that all your financial data is in one place.
You can also share notes and collaborate with your team.
The search tool in Evernote makes it easy to find what you’re looking for without leafing through lots of paperwork, (it will even look for handwritten text in a scanned image).
So let us consider all the different sources of your financial paperwork and how to deal with them using Evernote:
Paper Expense Receipts
With Evernote you can take photos of those piddling little cafe receipts with your phone using the Evernote App Scanner (it’s brilliant!) and the receipt will go directly into a designated notebook in Evernote.
With your receipts that come in via email, Evernote assigns you a unique Evernote email address so that you can forward these as the come in to that designated notebook in Evernote.
Bank, Paypal and Credit Card Statements Downloaded
Email them to your Evernote email address or attach them from a file on your PC to your Evernote Notebook
How to Get Started
Set up a notebook in Evernote and call it 'Financial Notebook' for the current year e.g. 'Financial Notebook 2017' (you may want to call it something more sexy/creative- if you can think of a sexy name for finance, please tell). I digress, you can save all your money stuff into that Evernote Financial notebook, including your tax paperwork, accounting management reports and year end accounts .
I have personally taken this one step further and set up a 'Stack' of financial notebooks. My lead notebook is called 'Business Bright Finance 2017' and the notebooks within that stack are monthly notebook so that I can have all my financial records ordered by the month. This also makes it easier for my bookkeeper as it sorts my data into months.
As stated before, you can then share your Financial Notebook with your bookkeeper/accountant or administrator each month.
Or if you do your own bookkeeping you can bring up the contents of your Financial Notebook on your iPad while you enter the data into your laptop or PC.
I have detailed step by step instructions on this if you would like and I have a screen-shot of my Financial Notebook in Evernote and the corresponding Notes.
I want to keep this post short and ‘sweet’ so I will have suggestions for paper record keeping in my next post.
What do you use currently? Are you happy with your record keeping system? Does setting up a paperless system interest you?.