There is nothing more empowering than getting a handle on your books. When we’re in control and in the know with our finances, we can do anything. It’s imperative we as business owners get a clear understanding of our finances so we can ensure company growth for years to come. Here are some of my favorite secrets and tips to keep your business progressing forward.
Reminders are your friend
It gets so busy running your business that we often lose track of time and dates. We’re so busy thinking about the running list of things we “have to do" in order to grow and scale that we often forget about payment dates. This can be problematic for two reasons.
First, if you’re using an automatic payment to pay those bills and forget it’s coming out of the account you could find yourself in a financial pickle. I’ve seen clients have to take out short-term, high-interest loans because they forgot bills were coming out and they had to make payroll fast. Let’s not do that. It sets the business back as you’ll be trying to catch up in the business while making those loan payments.
Secondly, if we don’t use an auto-draft and forget to make a payment, now we’re looking at late fees. Too many of those and you start looking at higher interest rates, larger deposits or the possibility of a rejection of cash flow when you need it.
Neither of those scenarios sound good to me so mark payments down in your calendar so you can plan ahead.
Set aside money for taxes
This is particularly true for my solopreneur friends. Way too often as solopreneurs we end up using all of the money we acquire because it’s all we have to live on and clients can be sparse and inconsistent. The hope is that there are enough tax write-offs and spousal tax payments to offset our tax liability. That’s a pretty scary way to live if you ask me. Set aside the money for taxes and thank yourself later. It may seem like a sacrifice now but it’ll hurt more when you get a big tax bill with penalties first quarter of the following year.
Check the money daily
Raise your hand if you’ve ever been afraid to check your bank account? That’s a scary place to be. Let’s eliminate that problem and make your finances part of the daily routine. Checking in on how much cash is going in and out is an excellent way to ensure you’re making smart financial decisions both personally and professionally. I highly encourage you to write things down and check them off. Thanks for that tip Dave Ramsey. I create a checklist and check things off so everyone stays on track!
Get help in all stages
Maybe a little too often we wait to get help. We wait until we’re making a lot more money to bring on a pro to help with the books but it’s actually a way safer bet to get help in the beginning. I mean when business is being formed. This is a great way to get help with the initial business structure, payroll formation and more! Doing everything right the first time saves you a lot of headache and cash when you get to the “I’m making a lot of money let’s hire someone stage.” Hiring a bookkeeper upfront should be included in your financial planning when launching your business. Bookkeepers aren’t just for the “I make a lot” stage.
If you’re thinking to yourself, “Amanda, I have no clue about my books,” well good thing I’m here to help. Schedule a no-cost consultation to see how my team and I may be able to help you get those books in order so they work for you and not without you.
This is how this looks over 12 months with me:
Bookkeeping process is established for your business via QuickBooks Online and any other integrated applications you utilize.
Strategic Income Categorizing via Products & Services Sold.
Sales, Estimates & Invoicing process reviewed.
Intentional Expense Categorizing review with Receipt Matching & Monthly Reconciliation.
Establish Automation Station.
Customized Financial Reports & Reviews w/ Owners.
Reconciliation of all accounts provided.
Payroll Review for Owners, Employees & Contractors. Client Maintains.
Connecting applications may be necessary.
Secure file & password share for all applications used.
ALL banking statements to date will be required.
Intentional Budget Plan
So where is your business? Where could you use support? We all need a bookkeeper. Now it's up to you to decide how to best utilize one. If you're not sure of where to start, let's talk. This call comes with no strings attached and is designed to help you figure out what's best for your business. Chat soon!