When Should I pay my expenses?

4 April 2012
Author: Alexandra

Should I pay my expenses when they come in or process them once a week or month?

As business owners, we should know our priorities, responsibilities, and obligations. One of these priorities, responsibilities, and obligations is paying the bills or expenses that our business makes. We all know that our income must exceed all our expenses in order to pay them and to know whether our business is profitable or not. One question that lingers on most of business owners from time to time is, “Should I pay my expenses when they come in or process them once a week or month?” We will try to get an answer for this question as we go along.

Yes, it’s true that paying expenses when they arrive will give a better perception or understanding of where the business is at, even so, it is still better if you can process it weekly or monthly. It is because of the fact that you cannot always be sure that you can pay those bills on time if you don’t plan it. One way to manage your expenses is by categorizing it using a good bookkeeping tool. Through this, you can be able to easily manage your expenses and their due dates. You won’t also have a hard time thinking of paying your expenses all at once because it is already prepared and sorted out. When you prepare it, you can pay your bills on time and you can develop a harmonious relationship with your suppliers or dealers.

As a sole business owner, we need to know that we are the only ones responsible for everything that is going on in our business so we must be in charge in paying all our expenses on time. This way, we will not have so much trouble in running our business and we will also build up an excellent name for it.