06/07/2022
In times of uncertainty, especially for , it becomes more important to understand what your are doing.
I've broken it down into 4 simple rules.
1. Know where all your money is!
Many use personal credit cards for business expenses. Or they take out a loan against their home to help fund their business, but they don't record this as business expenses. Or even an investment in their business. Make sure you are tracking these, not just the business checking account.
2. Set Aside Money for Taxes
We get caught up in the day to day and we forget that every sale we make has a tax implication so make sure you have money set aside.
3. Embrace your true expenses
Let's face it. You may have outlined your budget but most likely something came up to change your spending plan. Make sure you are tracking what you're really spending money on.
4. Prepare for the down cycle
Every business has times when business is slow. For me, it tends to be August and December. You will have it and it will happen again and again so plan for it. So you can pay yourself and your employees while keeping your cash flow from going red.
Money can be overwhelming but if your break it down to simple manageable steps you'll keep your cashflow green.
