Skip to main content


Get better at managing your business money

Get Better At Managing Your Finances text. Woman typing on laptop.

As business owners, we focus most of our energy on MAKING money. How can I improve my sales? Do I need to rebrand? How many likes did my post get? Is my copy converting my website visitors?

These are all valid and important for the livelihood of your business. Unfortunately, we forget that what we do with the mo
ney once it hits our bank account it's equally important.

Think about it this way.

Business A makes 100K each quarter. The expenses add up to 80K each quarter.

Business B makes 100K each year, and total expenses are 20K.

If we follow the model that profit = revenue - expenses, both end up with 80K in their pockets at the end of the year.

Knowing where the money is coming from and where the money is going on a regular basis will help you see those results in real-time. What you can do with that information is transformational. You have now gained control of each dollar.

And asking questions tends to be a really good practice when "meeting" with your numbers.

  1. Are my effort and load coherent with the money I received?
  2. Do I struggle with receiving payments from clients?
  3. Is the way I'm spending my money organized and compliant?
  4. Is the way I'm spending making sense to me, my values, and my vision?

Looking at a screen with your numbers listed clearly can help you answer those questions, making your decision process much easier and less scary or stressful.

HOW can you make this process work for you?

Use a system that you like and know you'll use and a system that supports your business in the future. What I mean by that is pick something that can grow with your business smoothly.

Keep in mind that whatever goes into this system will come out. Every single transaction you record will show up in financial reports. If you want clear and precise data, make sure you're including Vendors' names, an accurate description, and that you're using the correct account.

Reconcile every single month. The reconciliation process is when you match your bank statements to your records. Don't forget to track every account you use, whether it's banks, credit cards, merchant/payment processors. They all need to match and be checked for accuracy.

Turn this data into real and useful information.

Once you've completed a month (or more) of tracking your money, you'll have the data you need to pull your Profit and Loss. Schedule 15 minutes to look at those numbers. It's going to be weird and uncomfortable in the beginning, but it'll get much easier, and you'll get more out of it as you keep up this practice.

You can also use this time to pick up on "clues" or signs that something is off. For example, do you constantly have NSF fees because you didn't get paid on time?

This might be a sign that your invoicing/receiving payments process needs a makeover. Perhaps you can automate payments or simplify the way your clients pay you. The easier you make it on them to pay you, the higher chances you'll have at actually getting paid.

Another list to consider is your expenses by Vendors. Where is your money going on a regular basis? Remember, the way you manage your money is equally important as making that money in the first place. We all have our own journey, priorities, and goals. Make this process enjoyable for you by truly making it YOURS. And just like any other habit, simplify it and schedule it. Trust me. You'll see a huge difference in your business after you've implemented this.

Do you know anyone who could use this help? As a bookkeeper and owner of Liquid Cents Bookkeeping I help women consultants, coaches, and therapists get a better understanding of their finances and keep their finances organized. I'd love to meet you! Book your free consult here.


Popular Posts

9 Ways Employers Can Celebrate Juneteenth

What's one way a company can recognize and celebrate Juneteenth? To help you find ways to celebrate Juneteenth as a company, we asked business leaders this question for their best insights. From supporting Black-owned businesses to hosting an African-American guest speaker, there are several ideas that may help you bring your employees together to recognize and celebrate Juneteenth properly. Here are nine ways employers can celebrate Juneteenth and make a financial and social impact within your community and with your employees: Launch a Juneteenth Team-Building Event Invite an African American Guest Speaker Line Up Activities To Help Employees Reflect and Give Support Black-Owned Businesses Go on Museum Tours Celebrate Through Social Media Choose a Way To Actually Celebrate Together Play Trivia Games Throw Virtual Parties Launch a Juneteenth Team-Building Event A company can commemorate Juneteenth by launching a team-building event, where everyone is tasked with researching and pr

Top 4 Ways To Budget For The Holidays

Holiday gift-giving is a time of joy, and the expression you see on someone's face when they open that perfect gift can confirm that you found the perfect gift. Gisele Bundchen stated that "Christmas and the holidays are the season of giving. It's a time when people are kinder and open-hearted." When searching for the perfect gift(s), it's also essential to keep your budget in mind. Here are tips to keep your holiday budget on the right track. Photo by  Jakob Owens  on  Unsplash Budgeting for the Holidays Budgeting for the holidays begins by estimating what you plan to spend for gifts, travel, and food. If you have children, budgeting for presents keeps your budget on track by designating what you will spend on each child. If you have a significant other, agreeing on gift purchase limits for each other can help ensure that one partner doesn't overspend. You can also pre-plan your travel by budgeting at least six months in advance and establishing a limit for f

11 Professionals Share Tips on Asking For A Raise

What's one thing to consider when asking for a raise?  To help you with preparing to ask for a raise, we asked HR managers and CEOs this question for their best insights. From communicating challenges you overcame to presenting tangible numbers and results, there are several tips that may help you ask for a raise in the future. Here are eleven things to consider when asking for a raise: Communicate Challenges You Overcame Consider Asking For Perks Prepare for the Worst Ask for More Than You'd Settle For Make Sure Your Industry is in Good Shape Expect a Waiting Period Determine Why Your Boss Should Give You a Raise Come Into The Meeting Well-Prepared Plan a Year Ahead Consider Your Timing  Present Tangible Numbers and Results Communicate Challenges You Overcame Your boss and company must see your real growth. Therefore, instead of raving about your achievements, narrate the stories of how you encountered a challenge, made a superior result, and solved an issue. When we're ne