Feel like you’re constantly running around with your hair on fire?
Feel terrible that while you’re running around, your cash flow is disappearing and your expenses are increasing?
The secret to moving away from this NOW is to develop solid ROUTINES for your finances.
This one strategy has helped my clients more than anything get clear on what they are doing, how their business is performing financially and WHO can help them ensure they stay on track financially.
1. Track your cash flow weekly
One of the most important aspects of financial management is knowing where your money is coming from and going. Set aside time each week to review your cash flow—this includes all incoming and outgoing payments. A clear picture of your cash flow helps prevent surprises and ensures you can pay your bills on time.
To make this easy, I’ve created a simple spreadsheet template you can download and begin tracking your weekly Cash flow NOW
2. reconcile your accounts monthly
Reconciliation ensures that the numbers in your financial records match what’s in your bank and credit card statements. This process helps catch errors, identify fraudulent transactions, and provides an accurate picture of your financial situation.
Reconciliation should be completed MONTHLY by someone else other than the business owner. The reason is, this activity is something that can be easily delegated and managed by someone else.
3. plan your business budget every quarter
Budgeting isn’t just for personal finances. A business budget helps you manage expenses, prioritize spending, and set achievable financial goals.
Take the time to review your budget every quarter, adjusting for any changes in revenue or costs.
You can do this easily by simply making a list of all business income and their sources, and business expenses in a simple spreadsheet. If you have accounting software, you can also look at past reports to help see what you’ve spent.
I personally like to complete my budget monthly around the 25th of the month for the upcoming month. This helps me to plan ahead for what my revenue will be, what expenses I might decide to cut for the upcoming month, and other considerations.
One more tip on your business budget! Don’t forget to include any credit card or line of credit payments. These payments can sneak up on you and wreak havoc on cash flow, so make sure you plan ahead the amount you need to pay so you’ll have the cash on hand.
4. set aside time for taxes
Tax season doesn’t have to be stressful if you’re consistently setting aside time throughout the year to stay organized. Make it a habit to log expenses, track deductible items, and consult with your accountant regularly. By staying proactive, you’ll avoid last-minute scrambling when tax time comes around.
5. review your financial goals
Have you set financial goals for your small business?
Your business goals should evolve as your business grows. Take time at least once a quarter to review your financial goals, assess your progress, and adjust your strategy as needed. Whether you’re aiming to reduce debt, increase profits, or save for future growth, regular goal reviews keep you focused and accountable.
By adopting these financial routines, you can keep your business in a healthy financial position. The key is consistency—setting aside time each week or month to stay on top of your financials will give you the confidence and clarity you need to make informed decisions.
