It turns out that if you run a business, you have to keep track of where the money comes from, and where it goes. In any business larger than a kids’ lemonade stand, this is strictly necessary in order to know what is happening with the business. And in the U.S. and most countries, you have to pay taxes to the government based on those numbers. This is bookkeeping, and if you do it right, it serves as management accounting. (more…)
I’ve used online banking for about ten years now, while I managed finances for a household and two businesses. In that time it has been necessary for me to visit a physical bank only a handful of times, while the other thousands of transactions were done from home, or wherever I was.
Unless you’re living without electricity or Internet, it’s a sensible way to do it. My accounts are all reconciled and balanced several times a week; when Bank Statements become available, they’re just old news to me, since I’ve been paying attention all month long.
And for travel, there’s no comparison. I spent a year and a half working in Mexico for clients in the United States. My clients would receive my emailed invoice, and with a few clicks, pay me. When the funds cleared, I withdrew pesos from an ATM. (more…)