When entrepreneurs dream of being business owners, their vision of a successful enterprise rarely ever includes the image of meticulously managing the books. It can be difficult to take the time to sit down and review the financial statements which can make it easy to fall behind on money management. Here are four “Type A” money management tips to help you successfully keep track of where your finances are going.
- Send your invoices ASAP: The timeliness of getting paid depends on when you send out an invoice. Any delay in sending out your invoice decreases the chances you will get paid on time. Finding ways to automate sending your invoices out assures your mind that the task is completed.
- Walk, don’t run with your growth: While your business’s journey from start-up to small business had its own set of leaps and jumps, remember to pace your growth. A business growing too fast can get out of control making it difficult sustain; so plan to invest in your growth.
- Get creative with color: Taking the time to create colorful and organized spreadsheets for your own personal use can incent you to keep track of your accounts payable, receivable, expenses, cash flow, and so on. Creatively personalizing and interacting with your own financial spreadsheets helps motivate you to try to look at your figures at least once a month; and if you’re on top of it, once a week.
- Save, Save, Save: Every business has its good days and bad days. The best way to prepare for these income fluctuations is to add a weekly sum to a petty cash fund (or whichever way you like to save) and put some away when you have it.
Making a good habit of checking your finances is the best way to stay on top of the bookkeeping. A weekly or daily check takes less time than the daunting task of spending hours going over finances every quarter. These four money management tips will help you know exactly where your money is going and how to plan for your business’s success.
Remember, running a business successfully does not need to be complicated. Keep it simple!
Business owners, check out ways I can help you build a clear path to achieve financial freedom at www.portalcfo.com.
Manny Skevofilax is a consultant, speaker, and author who helps business owners maximize profits and overcome growth challenges to achieve financial freedom. An expert in strategic planning, financial statement analysis, and business operations, he’s been achieving extraordinary outcomes for his clients since 2003. Prior to starting his consultancy, he was a vice president with Comerica Bank, a U.S.-based commercial lending institution. His new book is Ultimate Profit Management: Maximizing Profitability as You Grow Your Business which was published by Taylor & Francis.
Learn more at portalcfo.com. Manny can be reached at 410-808-3441 or via email at manny@portalcfo.com.
