Your business financials are the main analytical tools to tell you how profitable your business is. Even so, some business owners don’t start out keeping good records. Even if you’re not planning on asking for financing, you do need to get your business financials in order. Here are five tips to get organized.

Separate Business and Personal

If you don’t have a separate account for business cash, make one now. Designate one credit card, preferably a business card but a personal one will work in a pinch, for all business purchases. Stop mixing your personal and business finances.

Create a Filing System

Make your accountant happy by getting all those receipts and statements in order. A simple set of file folders labeled by month can be enough to get you started, but you may need to add some folders as your business grows. Spend 30 minutes once a week filing bills and bank statements to make sure you don’t forget to pay something or forget to collect on an invoice.

Use Autopay

Forgetting to pay bills not only reeks of unprofessionalism, but it can hurt your credit and cost you more. Set up autopay to handle payments.

Plan Ahead for Expenses

It’s easy to get into crisis mode and only handle things as they pop up. Start planning for long-term expenses that you know are heading your way. Start saving money to have a buffer when you do need to replace that laptop or printer.

Use Your Business Financials to Gain Insight Into Your Business

Pay attention to your P&L and balance sheet to figure out where your money is going and if you’re getting a good ROI. Use your business financials to analyze your business.

Contact the financial specialists with LMC Alternative Business Capital for financing options that let you grow your business.