Let’s discuss why effective document organisation, storage and sharing are key steps in improving your overall financial wellbeing.
So, what is financial wellbeing and why is it important? We define financial wellbeing as feeling secure and in control of your finances, whether that’s business or personal. This in effect means being able to maximise the use of your money and ensuring a healthy future for your business.
By storing, managing and tracking your finances properly, you can keep on top of your business and its net-worth which ultimately lets you make more informed financial decisions in the future.
Not having a grasp of your finances is often enough to stress out even the most level-headed business owner.
Being organised with your finances and supporting documents means that you will likely be aware of any financial issues or on the flip side any overlooked profits or successes. Not having an accurate understanding of your business’s overall value and financial state can put you at a serious disadvantage for financial planning and meeting goals compared to those who are educated about their net worth.
The benefits of being organised include:
Making informed financial decisions
It’s easy to switch on autopilot when it comes to financial decisions, but understanding your business’ value gives you a snapshot of your current financial situation, meaning you can spend more mindfully and be better prepared to make those large financial choices. This can work both ways as you may also be keeping money squirrelled away when it’s not that necessary to do so.
Being aware of your financial position over time
Checking in with your finances and documents periodically gives you an indispensable report of your financial health over time, ensuring that you are heading in a positive direction with your business wealth.
It’s easier to work towards a goal
Following on from this, good financial organisation makes it easier to set and work towards financial goals.
Keeping track of your business’s net worth regularly also means that you can more accurately predict how much financial growth is realistic in a certain span of time. This allows you to set more attainable time-focused goals.
So, now it’s clear how your financial wellbeing, a sense of security and confidence with your finances, could suffer as a result of the improper organisation of your finances and their related documents. So, how this be improved?
The first step to financial wellbeing is understanding how to effectively store your financial documents.
What documents do you need to keep a good record of? If you own a business, it’s essential to keep track of the following as all of these could need to be accessed at any time:
When properly organised, these documents also contribute towards giving you a clearer picture of your company's overall financial health and net worth.
As with many things, the way we store our documents is generally in a digital format and we believe this is the best way to organise your finances. You can access digital documents from anywhere in the world at any time and share them with the people you trust.
Other benefits to digital storage include:
The next key step to improving your financial wellbeing is sharing your financials with those you trust. In the context of personal documents such as wills and life insurance, sharing is important because it allows family and friends to keep track of your finances, documents and overall situation should you no longer be able.
You might share your business documents with a business partner or employees for similar reasons. When people are involved with the day-to-day running of your business, sharing your business documents with them increases mutual understanding and allows for improved teamwork. When everyone is in the know, you can ensure that your business grows.
Now you have all the information you need to begin your journey to better financial wellbeing!
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