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Running Your Home With Business Sense

Unfortunately for many, finances become so tight that individuals in this situation almost have to look at running the daily workings of their home like a business particularly when it comes to the finances.

Many individuals have a whole conglomerate of bills that they need to deal with on a monthly basis and these can soon get out a hand if they are not well organized. For those that set a budget they have some idea of how to organize their finances and categorize them into their assets and expenses.

This needs to be taken as step further where the monthly expenses are broken down where they can be tracked much easier.   By doing this it can actually help one to save some money.   All too often with the hectic busy lifestyles that many of us lead we tend to take our monthly invoices and pay them out, without giving a second look to them other than as to what is owed.

There are many mistakes that can be made on all types of invoices which includes the utilities as well as the credit card payments.   It is well worth scrutinizing these on a monthly basis to check to make sure that all of the information contained on them is accurate.

By paying closer attention to the various invoices it will also give the homeowner an opportunity to see how the costs are faring on a monthly basis. When more attention is being paid to these bills then if a spike happens to occur the attention is going to be immediately alerted to this.  When one isn’t paying attention to this then spikes and increases can occur that may not otherwise be justified.   For example, tracking the monthly Hydro bills will give one a good idea of being able to compare these expenses month to month and will give an alert if something unusual occurs.   It shouldn’t just to be assumed that a Hydro hike has taken place.   There could be something wrong with the electrical components in the house that need attending  to. Or, it may be enough to draw attention that the family needs to be more astute at the amount of Hydro that is being used.

The same thing applies with the credit cards so instead of just paying what the bottom line is, paying attention and tracking what the increases are each month may bring to mind that spending is getting out of hand. This will allow one to take immediate steps to bring their spending under control which will certainly help to keep the more financially stable.

These are all the tactics of that a sound running business follows and certainly can be extended into the home life to keep the finances far more stable and organized.

 

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Sam Seidman, CPA, CA, LPA
629 Sheppard Avenue West
Toronto, Ontario
M3H 2S3

Telephone: (416) 398-1700
Fax: (416) 398-6226

Chartered Professional Accountant, Chartered Accountant, Licensed Public Accountant

Email: sam@torontoaccountant.ca

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