Whether
you are a new entrepreneur or a more experienced business owner,
taking control of your finances can feel like a part-time job.
Some simple tips can help you streamline your time, organize
your finances and reduce the stress of business money matters.
1. Keep Your Bills in One Place
When the mail comes, make sure it goes in one place. Misplaced
bills can be the cause of unwanted late fees and can damage
your credit rating. Whether it's a drawer, a box, or a file,
be consistent. Size is also important. If you get a lot of mail,
use an area that won't get filled up too quickly.
2. Pay Your Bills on Schedule
Bill paying can be simplified if it's done at scheduled times
during the month. Depending on how many bills you receive, you
can establish set times each month when none of your bills will
be late. If you're paying bills as you receive them, chances
are you're spending too much time in front of the checkbook.
Although bills may state "Payable Upon Receipt", there's always
a grace period. Call the creditor to find out when they need
to receive payment before the bill is considered late.
3. Read Your Credit Card Statements
Most people take advantage of low interest credit card offers
but never read their statements when paying the bill. Credit
cards are notorious for using low interest as bait for new customers
then switching to higher rates after a few months. Make a habit
of looking at your statement carefully to see what interest
rate you are paying each month and if any transaction fees have
been applied. If the rate increases or a transaction fee appears
on your statement, a simple call to the credit card company
can oftentimes be beneficial in resolving the matter. If not,
try to switch your money to a more favorable rate.
4. Take Advantage of Automatic
Payments
Most banks offer a way to automatically deduct money from your
account to pay creditors. In addition, the creditors usually
offer a lower interest rate when you sign up for this payment
option because they get their money faster and on-time. Consider
it as one fewer check to write, envelope to lick and stamp to
buy. Just make sure you record the deduction when the automatic
payment is scheduled or you run the risk of bouncing other checks.
5. Computerize Your Checkbook
Using a software program is a handy way to organize your finances.
Whether it's Quicken(r), Microsoft Money(r) or another package,
these easy-to-use programs make bill paying and bank reconciliation
a cinch. Computer checks can be ordered almost anywhere and
fit right into most printers. Once the checks are printed, all
of the information is automatically recorded in your electronic
checkbook. Furthermore, many banks have direct downloads into
these software packages so when money is deposited or withdrawn,
the transaction is entered immediately onto your computer. And,
when it comes time to do taxes, it couldn't be easier.
6. Get Overdraft Protection
Most banks have a service where, if you run the risk of bouncing
a check, the money will come from another source. For a nominal
fee, the bank will link your checking account to either a savings,
money market, or credit card so the embarrassment of bouncing
a check will be avoided. Call or visit your bank to learn about
this convenient feature.
7. Cancel Unused Accounts
Whether it's a credit card or bank account, write a letter requesting
that the account is formally closed. Not only will this improve
your credit score, it is a useful way to avoid money from being
scattered all over the place. Don't let department stores and
credit card companies lure you into opening new accounts by
offering favorable interest rates and purchase discounts. It's
easy for credit to get out of hand by taking advantage of every
credit offer that comes your way.
8. Consolidate Your Accounts
If you have several credit card accounts with outstanding balances,
try to consolidate them into one. Be careful and check the balance
transfer interest rates and one-time fees. Also, make a list
of all your open Money Markets, Savings, CDs, IRAs, Mutual Funds,
and other accounts to see if any consolidation can be done.
Keeping your money in fewer places eliminates all of the guesswork
involved and reduces errors.
9. Establish Automatic Savings
Create a link from your checking account into a savings account
that will not be touched. This can usually be done through the
banks and automatic amounts will be transferred over each month.
Most people will not put money into a savings account on a regular
basis. They may wait until a large tax refund check arrives
or some other event to actually deposit money into savings,
retirement or other accounts. If you establish an automatic
savings deposit every month, your accounts will begin accumulating
money faster than you think.
10. Clean up Your Files
Make sure your paid bills are organized in a filing cabinet.
Keep individual files for paid bills. Go through your files
at the end of each year and throw out bills and receipts no
longer needed for auditing purposes. Contact your local IRS
office to see how long records need to be kept for audits. Usually
federal tax return audits can be done three years back but cancelled
checks may need to be kept for seven. Consult the Internet for
auditing and records-keeping procedures for your state or region.
(c) 2005 DebtGuru.com(r). This article may be freely distributed
as long as the signature file and active link are included.
About the author:
Michael G. Peterson is the Vice President of American Credit
Foundation, an IRS 501 (c)(3) non-profit consumer credit counseling
organization that has assisted thousands of individuals and
families with their financial situations through seminars, education,
counseling services, and, debt management plans. For more information,
and free consumer resources visit http://www.debtguru.com.
Written by: Michael G. Peterson
Article
Source: http://www.Afqam.com
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