Step 4: Reconciling the accounts
Congratulations! You're on top of all of the steps. You log in to your bank account and there's plenty of money. You do a happy dance and congratulate yourself - I'm killin' it! - Not so fast...
Have all the checks been cashed? Did your deposits clear? What? You don't know? Without that knowledge, you don't know what money is leftover. And that's when checks start bouncing. And your vendors get angry. And your credit score goes down.
The accounts need to be reconciled every month. Every. Month. Credit card statements, too.
Reviewing what went out is a pretty…
Step 3: Organizing the data
Now that you are using your bank accounts properly, and tracking your income and expenses, and receiving all kinds of statements - what do you do with it all? How are you tracking your new banking info? Shoeboxes full of receipts and statements, envelopes, spreadsheets, notebooks - anything is better than nothing. As long as it makes sense to you. Ideally, you'll be using software meant for money management. QuickBooks is the most popular - there's also Xero - both online choices. Why is this better than your handwritten list? Or your elaborate spreadsheet that is…
Step 2: Break out personal and business expenses
In the silver post, I made the point about the importance of separating funds with business and personal accounts. Now that you' ve done that, you should be categorizing your expenses there is often confusion or misinterpretation about what is " business expenses s play a quick game of True or False:
True or False? On the way to a client meeting, you stop for breakfast at Dunkin' Donuts. Business Expense? How about if you buy breakfast for the client also?
True or False? The fee for attending a networking event. And parking. And the…
Are you breathing easier now that October 15th has come and gone? Finally, got that extension filed and now you can get back to focusing on your, business? What would it feel like to not sweat it when tax time comes around? How great would it be to easily provide your account with all the info they request, without feeling panicked or a sense of dread? How much time would you get back if you had a system that prevented chaos?
Good news! There is a way to build a simple system and stay on track. Over the next few weeks,…
"Let's have a conversation so I can learn about your business and your goals for the future. Then, I will share my best suggestions to help you take control of your money, and offer a personalized plan-of-action to get you moving forward toward a more successful business ... a plan that includes more profitability and more freedom to enjoy it!
We'll take some time to review how - or if you are currently tracking your income and expenses, and address the challenges you may have had in the past.
Together, we will decide how you want to manage your financial records going forward. Do you prefer to do it yourself, and possibly need some guidance, tools, or resources to help you get it done - faster, easier - with less stress and anxiety?
Would you rather outsource your money-management tasks, or use in-house staff so your time can be free to focus on other things?
Maybe you need some assistance to train your staff to handle the tasks for you as efficiently as possible."
Whatever your needs, lets talk about how to implement the best solution for you."
By the end of our session, you will have:
A clear picture of where you've been and where you are heading
A greater understanding of what systems work best for you and your business model
Recognition of the level of service you require now, and what you will need in the future
The confidence and readiness to move forward, knowing that you are making smart decisions about managing your money