Important ways to Track Business Transactions

It is important to track all the transactions. Cash inflows and outflows are important and if not recorded properly they can lead the business into serious financial troubles. Here are some of the ways which can prove helpful to track business transactions.

1. Record all the transactions: this is the most important step to keep a track. You can record the transactions in individual ledger account or enter the information in the computer spreadsheet. Enter all the cash outflows and inflows.
2. Allot the job to a specific person: appoint a person who looks into the transactions taking place. Design the job of the person such that the person records all the transaction in the books under different headings, manage all the cash inflows and out flows such that at the end of the day you have all the records of the money that is withdrawn and deposited in the business account.
3. Deposit your cheques everyday: the verification of the cheques takes time. To take the benefit of the actual date of payment and receipt try to deposit cheques on time.
4. Ask your clients to pay you on time: longer the repayment duration, longer your books remain unbalanced. Timely payments help you to record the transactions on time and this saves you from the hassle of balancing your accounts in last moments.
5. Clear your outstanding dues on time: make sure you pay all your creditors on time. Long standing dues not only add up to the interest but also keep your books unbalanced for a long time. Avoid postponing the payments until it is extremely necessary.
6. Record your transactions under different headings: start with a broad heading of cash inflow and cash out flow. Under these broad headings enter all the transactions under specific headings. This will give you the clear picture of all the cash that has flown in and out of the business in certain time period.
7. Use one cheque book instead of two: this is important if you wish to enter all the transactions accurately. Using one cheque book will help you to keep a track of the entire amount that you pay to different lenders and creditors. This also helps you to record all the payments in orderly manner. The entry in the cheque stub can be used for verification if there is any error in balancing the accounts.

Keep a track on all the business transactions if you want your business to grow. To track your finance you don't have to be an accounting expert. Just follow the above mentioned points and manage your business finances.