![\"\"](\"http:\/\/www.vencru.com\/wp-content\/uploads\/2020\/01\/Expenses-5.png\")
<\/figure>\n\n\n\nIt is highly advisable as a business owner to separate your business expenses<\/span> from your personal expenses. The reason is that you want to track all cash flow required for growing your business. For example, understanding which expenses can be eliminated or reduced. Keeping personal and business records separate allows you to be organized in ensuring that your separate personal and business financial goals are identified so you can accomplish them.<\/span><\/p>\n\n\n\n Pro tip:<\/span><\/strong> Allocate a set salary for yourself to use separately for personal expenses. This will help ensure that your business and personal expenses are not muddled together.<\/span><\/p>\n\n\n\n Digital transaction records help highlight the key elements that drive your business growth. For example, a business owner will find it hard to determine customer loyalty by using paper records compared to keeping digital records<\/a>. With digital records, a business owner can determine your most profitable product\/services, frequency of customer purchases, most expensive categories, etc.<\/p>\n\n\n\n These details are essential in growing your business. Vencru offers free tools that allow you to record your business transactions and track performance metrics that help your business grow.<\/p>\n\n\n\n Small businesses often leave bookkeeping at the end of the month or year-end. Playing catch-up is stressful and not ideal for two reasons:<\/p>\n\n\n\n Instead,<\/strong> Start a routine. Set aside 20-30 mins every week to reconcile your records. Send clients invoices even if you verbally agree to sell a product or perform a service. If the client has paid, ensure a sales receipt is sent. Invoicing apps like Vencru<\/a>, Invoice Maker, or Wave allow you to adjust the date when creating an invoice or receipt.<\/p>\n\n\n\n Another major bookkeeping mistake is treating cash flow as profit. Profit is left after expenses have been paid, while cash flow is the inflow and outflow<\/strong><\/em> of cash to your business. A company\u2019s profit can be higher than cash flow because some clients may have outstanding payments. Tracking your cash flow<\/a> is important so you don\u2019t run out of funds to cover expenses. It also helps you identify debtors to follow up with them ahead of upcoming bills.<\/p>\n\n\n\n2. Lacking digital records of your business transactions<\/span> <\/h2>\n\n\n\n
3. Waiting until the last minute to perform bookkeeping<\/span> <\/h2>\n\n\n\n
![\"\"](\"http:\/\/www.vencru.com\/wp-content\/uploads\/2020\/01\/Expenses-1.png\")
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4. Thinking that cash flow is the same as profit<\/span> <\/h2>\n\n\n\n
![\"expense](\"http:\/\/www.vencru.com\/wp-content\/uploads\/2020\/01\/Expenses.png\")
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