How to Track the Finances of Your Internet Marketing Empire

How to Track the Finances of Your Internet Marketing EmpireDo the words ratio, margin, balance sheet and finances in general throw you into a heart palpitation-riddled, breath-in-a-bag type panic attack?  Do you have problems helping your ten-year-old with basic mathematical equations?  Don’t fret.  There is no need to hang your head down in shame.

After all, you’ve managed to create your own internet empire and that requires some mighty impressive business abilities.  No one expects you to know how to do everything.  If heavy-duty number crunching falls outside your repertoire of skills, don’t worry.  By following a few easy tips, you can keep track of your money and ensure that your business remains fiscally on-track.

Getting started

The first step is to put a system in place.  Here are a few tips that will make tracking your business finances much easier.

  • Separate your financesYou need to keep your personal and business finances separate.  This means opening a bank account specifically for your company.
  • Purchase financial software.  Carefully select a bookkeeping program designed to meet your business needs.  This will remove much of the need for paper, which can be lost or misfiled.  It will also enable you to organize your finances more efficiently and create financial statements.
  • Develop a filing systemYou will need to devise a system for keeping your invoices and receipts in order.  Remove all pieces of paper from your pockets or purse everyday and file them accordingly.
  • Make a daily commitmentMake time each and every day for engaging in bookkeeping activities.

Learn some accounting basics

Developing and adhering to a new bookkeeping system is much easier if you understand some bookkeeping basics.  Here are some basic statements that you will be able to create once you have implemented a new system.

  • Balance SheetThis can be created daily, weekly, monthly, or quarterly and is a list of all of your company’s assets and liabilities.  Assets would include items such as cash, inventory, property, and corporate investments.  Your business’s liabilities are items like monies owed, expenses, payroll, and rent.  This document is extremely useful as it gives you a snapshot of the financial viability of your business. 
  • Income statementThe income statement, a.k.a. “profit and loss statement,” tallies up your company’s income, deducts its expenses, and shows the net profit or loss. 
  • Cash Flow statementMany businesses have failed due to cash flow, so it is imperative that you keep track of the money that comes in and goes out of your business.   

Recruit support

It is important that you reach out for help with your bookkeeping when you need it.  Here are some tips that will help you get support.

  • Develop a strong working relationship with your accountant and visit him/her regularly.
  • Ask a bookkeeper to give you a lesson on using your financial software.
  • Take a course on basic bookkeeping principles.
  • Create a good relationship with your banker and tap into their financial advice and know-how.
  • If you simply don’t have the time to track your finances, hire a professional.

The trick to managing your company’s finances is to find a system that works for you and stick with it.  So stop blowing into that paper bag, put away your Xanax, and step away from the window ledge.  You can get a handle on your bookkeeping.  And if you can’t, there’s a professional for that.

What time-saving trick has helped you get a handle on your company’s bookkeeping?  Are there any that didn’t work?  

Kimberley Laws
I am a freelance writer, avid blogger, illustrator, and aspiring novelist who thinks the world is a terribly funny place filled with bizarre things to observe--and, of course, comment on.
Kimberley Laws

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