As a small business owner, it is easy to lose track of the money coming in and going out. Keeping track of petty cash can feel insignificant. It is particularly a lot harder to keep track of expenses below N5,000. For example: airtime, those little N52 fees Nigerian banks charge per transaction to a different bank, transportation, those vendors that never seem to have change and you’re forced to leave it for them, etc.
As a smart entrepreneur, you should always keep some sort of daily journal and enter all business activities either as they happen or at the end of business day. Those little expenses tend to compound on the long run. Accounting for them can save you thousands in operating cost.
You hustle hard for the month, pay your bills, pay your operating costs only to realize you are have nothing to pay yourself. So you say you’ll do better next month, after all, business is moving. But the cycle just continues. Before you know it, it’s December and you can’t afford to spoil yourself for the holidays. Next thing you’re wondering whether this business is for you or not.
Where did all your income from those sales go to? It’s the little things that get you.
Firstly, you want to be able to keep track of your sales. Which means you need to keep your invoices. Having an invoice not only helps you keep track of sales but also makes you look professional.
Any client dealing with you will respect you and appreciate your professionalism if you issue them an invoice. If most of your business is online via social media, you can email your invoice as a PDF file.
Here is a simple invoice template you can use to generate invoices for your business. At the end of the month, simply sum up all your sales and get your total revenue for the month. It also helps you know who has paid and who hasn’t.
To print invoice as a pdf file, simply go to:
- FILE on your menu bar
- Select PRINT on the drop-down menu
- Click the drop-down menu under PRINTER and select PRINT TO PDF
- Select PRINT and save to your computer.
If you are a freelancer, then this special freelance invoice is perfect for you.
The other documents you need are an expense table and an income statement. These documents will help you visualize your expenses and highlight your profit and loss easily. The formulas have been inputted already. All you need to do is input your figures.
Each sheet on the document has a set of guidelines on the right hand side.
Do this for a week and see how much better your business will become.
I hope this helps your side hustle.
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