This week on Cake Business Owners Club I have been showing and revealing accounting and bookkeeping tips that you should incorporate in your cake business.
I also hosted a Webinar on Thursday where i spoke about:
- Things you should start doing so that you are on top of your finances;
- What books you need for your cake business;
- Software to make your bookkeeping much easier.
If you missed the live Webinar and replay, well I’m sorry, access to the Replay has expired.
So remember make sure you follow my blog and subscribe so that you will not miss awoof like this again.
This past week on both the Cake Business Owners Club Facebook Group and Fan Page, I revealed Bookkeeping Systems to have for your cake Business.
In case you missed these tips during the week, here is a recap for your information.
Thank me later. Enjoy!
As Bakers most times we do not have a head for figures. We prefer to spend our time looking at cake pictures and trying out different recipes. Rather than tracking your receipts, remembering the costs of things you bought, having to put your expenses in a book. However you need to realize that you need to establish a record keeping process if you want to succeed in your cake business.
In this training I will reveal to you bookkeeping and accounting systems you should have in place to have a sustainable business.
Have a Separate Bank Account for your Business.
Do not mix your personal account with money earned from your business. It is vital to keep your personal finances and business finances separate. You can easily open a business account with any bank as long as you have a registered incorporated business. Most people will always prefer to pay money in a business account rather than a personal one. This will build trust and will make you appear more professional.
Have a Business Plan for your Cake Business
When you have a business plan, it is like a road map for your business. This will help as a guide in your decision making and track progresses in your business. You will also need to have a record of your income, cost of goods sold, projected sales. You should also set targets for start-up costs, on-going expenditures and planned growth.
Develop a Chart of Accounts for your Cake Business
There are generally 4 books you should have for your cake business
- General account book (a ledger)
- Cash flow account
- Profit and loss account
- Balance sheet
These books help you categorize all financial aspects of your business, including cash, income and expenditures. Also will help you identify types of expenses and sources of income.
Keep all your Business Invoices and Receipts
Whenever you buy something for your business like ingredients and such, always keep your receipts. Make sure you always issues invoices to your customers and once it is paid, provide a receipt and keep a record. Keep separate files and folders for all these paperwork, that is, receipts, expenses and invoices.
Having all this information will help you to reconcile your bookkeeping and even for tax purposes.
Keep Records of all your Business Income and Expenses
If you haven’t been doing this before, start from now on you must keep every single receipt and invoice that relates to your cake business. When going out to shop for cake ingredients, don’t add your personal shopping too. Keep it separate. That is why you should have a business account so that all expenses for your business will be done from hat account. That will help you keep track of what you are spending ion your business.
Keep a Ledger or Account book of expenses and update the ledger regularly
As said yesterday, you should keep a separate file for receipts and invoices. Once a customer has made payment, make the entry in your accounting book in the income column, plus the final expenses in the expense column. And remember to update the ledger regularly
Having a ledger will allow you to keep track of expenses and your business growth.
Review your Business Bookkeeping Accounting Entries
Either weekly or monthly you should take a look at your bookkeeping entries to obtain a picture of your financial health and to correct any bookkeeping errors. This will help you access your financial position and see if your business goals have been met. It will also help you correct any errors that you come across.
Rotimicakelady is your personal cake fairy. She is a cake business consultant and Coach.
She runs the Cake Business Owners Club where she helps bakers through Online courses have super profitable and successful cake businesses.
She has a passion for helping women who have a passion for baking, transition from hobby cake makers to successful and profitable cake business owners.
She also help cake business owners who have struggling in their cake business with strategies to enable them get more customers, so you make more money. Rotimicakelady is passionate about Cakes, business and making money.