This is one of the most important steps in maintaining your financial records. This is one of the very first steps that should be taken when planning out your business. If you have already done financial forecasting for your business then this was done at that time. It does not matter how long you have been in business, you can still complete this process.
Take time to do this because it is very important and most likely it will not be done in one sit down, especially if you do not have an accounting system set up. When I was growing up I had to manage my families construction companies transactions in a bookkeeping book we purchased from Office Max. My father would make me write out all the expenses in this book with a pencil. I highly recommend you go back to this old school method, just to understand your businesses financial infrastructure.
Write down or type out if you are digital, all your businesses expenses. Expenses are the products and or services that cost you money. Next list all your Revenue streams for your business. For example if you are a branding and marketing agency, you will want to list all the different packages you have for your clients. This next part may bring you joy or pain, but you want to list everyone who owes you, even the ones that have not paid. Now the dirty work list everyone you owe or may owe over the course of your business. If you buy products on credit at a wholesaler then you want to put them down, along with anyone who has given you a business loan or line of credit, credit cards etc.
Analyzing your business transactions is very important, as you need to know what is going on in your business and just who should be on your books.