Controlling your finances may seem a daunting task for some small business managers, but if you follow 6 simple steps, I can guarantee you will be well on the path of controlling your business finances.
As a small business owner you may have bank accounts, emails and resources shared with your personal ones.
This may work well for a sort time, but eventually issues will occur, including not actually knowing what money the business is making, and if you are even making a profit. Often it will look like a profit, but without the proper financial management, regular reports, and any business analysis you might simply be running a business that you are constantly propping up with your own money, and not making a profit.
These steps are a framework to the blueprint of building a good system for keeping your finances under control. A full program, including worksheets and consultations, is available.
6 Steps to Financial Control – Small Business
1a. Review your current financial situation
1b. Budget Planner – complete the Budget Planner Spreadsheet, and list ALL actual incomes & expenses on a personal Budget Planner.
2. Bank Account Separation
**This is a most important step.
Your business accounts and finances MUST BE separate from your personal finances – bank accounts, credit cards – everything. no exceptions if you want accurate, legally compiled financial records for your business
3. Automatic Payments
Establish automatic payments to and from each account to ensure all loan payments and commitments are paid every week. Pay yourself a wage!
4. Reduce your Debts
After identifying all your debts, and setting up payments, what debts can you eliminate, reduce or combine?
5. Increase Income
If your commitments are more than your income, and you have reduced your debt, how can you increase your income?
** KNOW the difference between income and profit (read a definition)
6. Celebrate & review
It is important that you celebrate your control; and constantly review your income, expenses, bills, and savings every 3-6 months & adjust where needed.
Contact A Girl Friday for the full comprehensive 6 step business plan, worksheets, and one-on-one consultation.