As a business owner you are continually marketing, networking, blogging and doing everything you can to get more and more paying customers. That’s great! I love to see small businesses growing. I just have one question to ask you. Do you know where all the money is going? Do you know what’s in your business checking and business saving accounts? Do you have a way to track revenue and expenses? Or is the money flying out as fast, or faster, than it’s coming in?
In order to succeed in anything, you need to know what you’re working with. Your business is no exception.
You need to know what you sold, who you sold it to and how many you sold this week, month or year, depending on what your business goals are. You need to know what’s not selling. You need to know what’s working and what’s not in order to be sure that you are spending your working capital in the right places.
Don’t feel bad. Being passionate about your business is a great thing. It is crucial for success. However in order to be financially successful in your business, you must count the pennies.
Here Are 5 Tips Getting Your Small Business Finances Under Control1. Don’t avoid them
Knowing is half the battle. Whether you just sold your first widget or you are on your way to becoming a Fortune 500 company, you still need to be well versed in what your business is earning and what you are spending. You could be earning (and spending) more money than you think.
2. Create a simple system
Software can be great if you know how to use it. However an excel spreadsheet or even paper and pencil will get you started. The important thing is that you start tracking your businesses finances.
3. Be consistent
You’ve just made a sale, now what? Develop a habit of recording revenue and expenses as they occur on a daily basis. Don’t wait. As a business owner you know that there is always another seemingly more important task lurking around the corner.
4. Review your activity weekly, monthly and annually
One of the ways we improve is by looking at what we’ve just completed and saying, “Great! Now how can I do better?” That’s why reviewing is so important. Which of your products are your best sellers? Which clients continue to buy from you time and time again? Which widgets never sell? Reviewing your financial records will help you answer these questions.
5. Get Professional Help
Staff your weakness. Your business is your specialty and your passion. If you are just not good at handling the money, find someone reputable who can. A bookkeeper or an accountant can help you get it all under control so you can focus more on doing what you love. Just remember, they may be the expert, but it’s your money and you still need to know where it’s going.
In your business you are the leader. Successful leaders excel at the tasks they love and the tasks they loathe.
Remember, take care of your business and your business will take care of you.
Are there any tips you want to share? How do you keep your business finances under control?
Written By
Tanai M. Coleman
www.GodsChic.comwww.TMCFC.comwww.TaDaNetworking.com
TMC Financial Consulting
Your Money Is a Tool. Are You Using It Wisely?
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Thank you for sharing this information. It's something I needed to read. I actually just looked into hiring a bookkeeper because I just can't keep track of the finances. Hopefully, I'll be on the right track to getting things in order. Look forward to some more of your great tips.
I like your tips Tanai, I think you are right. For me, I really have to utilize my organizational skills while running my business and I schedule time at the end of my week to go over business finances and tracking.
Replies
Tanai,
Thank you for sharing this information. It's something I needed to read. I actually just looked into hiring a bookkeeper because I just can't keep track of the finances. Hopefully, I'll be on the right track to getting things in order. Look forward to some more of your great tips.
Thanks,
Jenn