When you think about bookkeeping, does it give you an instant headache?
It's not just you.
Numerous entrepreneurs do not like managing their business's finances, many put it off for years!
Instead of being afraid of your finances, use our SCARED method to break the cycle of financial fear.
S= Set up
1. Set separate business accounts for everything! Checking, credit cards, Venmo, PayPal, everything business-related needs to go into your business account. Make sure this account is entirely separate from your personal account.
2. Next, set up accounting software. Our favorite is QuickBooks online. If you need help setting it up, ask someone! Having a software system set up will make it easier to monitor and track your progress.
C= Catch up
If you have not done your bookkeeping, you need to, so you can pay taxes! It’s time to catch up on those transactions.
A = Analyze
Where have you allocated your money? Often we see our clients categorizing their expenses too vaguely.
For example, a business owner may have various expenses categorized under advertising; Facebook ads, business cards, or subscriptions. Make your categories as specific as possible. Then review each cost and ask yourself; is this helping? Do I need this?
R = Read
Learn how to read your reports. Your numbers are telling you a story.
Profit and loss statements (P&L) are an excellent place to start. Look at your monthly report and examine where did your sales come from? How many clients are you serving? Do you have seasonality? Compare your monthly P&L reports to past reports and observe your spending habits.
E = Explain
Explain your reports.
Do this by asking yourself why. Why did you have the seasonality? Can you fix it?
D = Decide
What is your plan? How are you going to change your spending habits? Are you going to offer something; an additional product or service to create recurring revenue? What is working well? What is not?
Don't let overwhelm and fear hold you back.
Follow our simple SCARED method to build momentum with your finances; we know you will be confident from the results!
Need help setting up or catching up on your book work? Click here
This blog was adapted from Val Cap's Thriving Coach series. For full interview click here.
Are you ready to grow your business by making smarter business decisions with your financials?
If you would like more information on getting your financial statements completed for you every month and getting accounting off your to-do list be sure to schedule a discovery call!
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