A Business Owner’s Guide to Managing Money
The secret to managing money is understanding your finances. You need to know where your money comes from, how much you have, and what you are spending it on so that you can make the right decisions. Managing money requires an ongoing commitment which means continuing to be aware of your earnings and expenses each day. If this sounds overwhelming, don’t worry! We’re here to help with our three easy steps for managing your business finances every day!
1st Step: Set up your budget
It’s essential to have a budget that you can use every day.
A good place to start is with the monthly numbers for each of your income sources and expenses, then break it down into daily amounts if necessary. Once you’ve set this up, take some time at the end of each month to analyze where your money was spent so that you are aware of what is working or not in your business finances! You will also need an emergency fund which should be separate from all other funds – make sure it has enough money in it before anything else! Make sure that when setting up these accounts on paper, they match exactly how much needs to go into them per month otherwise there may be complications later on.
2nd Step: Set up your accounts
It’s important to make sure you have all of the correct accounts. This includes a checking account, savings account (emergency fund), and separate merchant payment processor for sales made on websites or through apps such as Stripe. Each bank usually has its own set of fees associated with them so it is best to compare which ones work better for your business and daily transactions before opening an account! Once you’ve opened these accounts, you can link each one to our online accounting system where we will automatically import any new transactions that occur into the appropriate categories – no need to do anything yourself besides making sure that they are funded regularly!
You’ll also want to consider setting up different types of transaction labels depending on if it’s a business or personal transaction. For example, you can label your work lunches with their type of expense (lunch) and the person that it is for the inside of our online accounting software to make sure they are used correctly in reports later on!
Finally, consider setting up a separate account for taxes within Stripe. This way everything related to taxes will automatically be accounted for when importing transactions into QuickBooks Online – no need to worry about manually adding these numbers in every month!
Step Three: Track your money daily
The last step is also probably one of the most important parts if you want to manage your business finances properly! With multiple sources of income and expenses each day all over different apps like Slack, Google Docs, etc., it can get hard to keep track of everything. That’s why we’ve created a simple Google Doc spreadsheet that you and your team members can update daily with all of the financial transactions for each day! This way, if anything needs to be brought up at a later time, there is an accurate record readily available!
We recommend using this sheet in combination with our online accounting software by importing these numbers into QuickBooks Online – or any other bookkeeping system you prefer- so that their income and expenses are also accounted for when they download reports from Stripe on a monthly basis.
In order not to overwhelm yourself while trying out new steps within managing money, take one step at a time so you have more time in building successful business finances.
The secret to managing money is understanding your finances. You need to know where your money comes from, how much you have, and what you are spending it on so that you can make the right decisions. Managing money requires an ongoing commitment which means continuing to be aware of your earnings and expenses each…