Recording your invoices in your bookkeeping software is great, but what about your BILLS?
Some people will tell you this is optional. Well, it's optional like getting exercise and eating a healthy diet is optional. You don't have to, but it's nuts not to.
Starting and running a business is often a largely solitary pursuit. But it need not be, and really should not be. I’m on solid ground here. Heck, even King Solomon had something to say about it.
If you want a basic resource to track your monthly (and even non-monthly) expenses, and a spreadsheet would do the job but you don't want to create one, this is for you. I created it for myself about 3 years ago, and share it here for anyone who could use it..
How do the numbers for your business compare to other businesses about the same size as yours, in the same industry, in the same location?
Are you a tradesperson who has had such a busy summer that you haven't touched your books in 2 or 3 (or 4, or more) months, and now you're so far behind you don't even want to think about starting?
If yours is a seasonal business, and your main season is summer, managing cash flow starting NOW is critical to being around to do it again next season.
Drum roll please – clean out your truck! You can probably guess what that has to do with bookkeeping, but I’ll spell it out anyway so I can retain my crown as Queen of the Obvious.
You may have started a company or a small practice that feels to you more like a mission or a calling, but if people are paying you for your services, hear me: you have a business!
If it seems you work all the time, but still juggle to pay bills, here are some helpful questions to ask yourself. Several dynamics contribute to your cash flow. If your business is struggling with this, take a look at these factors.