Save Money by Handling Bills like a grownup
It’s obvious that you are behind in paying bills when drastic things happen such as the electricity is turned off or you get a lien on your business checking account. But are you afraid to answer the phone because vendors are calling for money? Are you missing potential sales calls because it could be someone calling for money?
I recommend that you pay your bills once or twice a month. As bills come in put them in a folder labeled Bills to Be Paid. Then each month (or every two weeks,) go through them and pay them. Enter each payment into your accounting software making sure again to give them the appropriate category and any notes you want to record.
If you are struggling with low cash flow, organize the bills in order of importance. If not, then organize them in date due order. I find it helpful to write the date I want to create the check right on the top of the page.
Adding Efficiency to save money
- Set up regular payments online to go out automatically.
- Have vendors send you an e-bill rather than snail mail. It is all less paperwork!
- File the paid bills in vendor or accordion files in alpha order.
- Organize these files by year.
If you need more clarity in anything I have mentioned above, email me and I will help you out. Next week I will give you some tips on what to do at the end of each month in order to be a responsible business owner.
Ronda Lane, In the Black Accounting
In the black; that’s the point