Do you want financial success as an Entrepreneur?

In your Internet business cash is the most important financial asset to measure.  And the only way to ensure you know your cash position is to consistently reconcile your business bank account.  At a minimum you need to do this activity once a month.  However, if your accounting software downloads your bank account activity automatically you can pretty much reconcile your account every day.  Just make sure you know what to reconcile though.

I don’t reconcile my business’ bank account everyday, but I do look at my cash position daily.  My cash position includes my bank balance, checks that haven’t cleared and any receipts I know are coming.  I make sure my business account is reconciled every month.  A reconciliation is the harmonization of financial records.  Your job is to compare your financial records with the records of the bank.

The Bank isn’t always right

Don’t just take the bank’s word for it.  Banks can make mistakes and we live in a world where fraud is an actual threat.  If you know all your business’ transactions are recorded in its books, you will know your cash position and a reconciliation will reveal any errors.

Managing cash is a critical skill for the entrepreneur to understand.  Accordingly reconciling your cash activity with the bank’s records will assure you have accurate information to make sound decisions. As your business grows you may need more information to make the important decisions, but make sure you have a solid process for quickly assessing your cash position first.  

Run your business with these simple cash management skills

Running a successful Internet business with a small cash outflow is possible today because there are so many tools available for free.  It can be easy to unintentionally increase your expenses by adding features.  Managing cash will allow you to stay on top of expenses and scale your business without debt.  Growing without debt makes success highly achievable.   

Cash is the lifeblood of your business and a powerful asset.  Closely monitoring your cash position and reconciling your business’ bank account every month, at a minimum, are habits that will pay you back.  Cash management leads to financial stability and future success.

What tools make it easy for you to reconcile your business’ books to your bank’s records?