July 15, 2020
We’ve learned how to feel guilt-free when spending our money, and we’ve talked a bit about what God says about money…now it’s time to talk about getting organized.
When it comes to organizing your finances, there are a few things that have helped me with this.
(To clarify, for the purpose of this blog post we’ll be talking about feeling organized in your business finances, versus personal).
We’re going to start with the basics and then layer on top.
License Your Biz
This will save your butt in so many ways, and it allows you to set up a business bank account – the very first step to feeling more organized with your business finances.
Set Up a Business Bank Account
…and then start setting aside 25-30% for taxes. Since I’m not a CPA, I can’t tell you exactly what to do with taxes, however, Melissa Whaley & Amy Northard are two wonderful experts who explain things so well when it comes to taxes and licensing your biz!
Having your own business bank account will make a world of a difference for you. This allows you to have your business income separate for your personal income, which makes it A LOT easier to track things throughout the year.
If you want to go all out, you can set up specific checking accounts for:
1. Overhead Expenses
4. Personal Pay
Or, you can keep it simple to start with your standard “Checking” & “Savings” accounts (I recommend setting aside your tax money in savings, however if you can open a 3rd checking account to label as “Taxes” then that will be even better).
…and then get into the habit of capturing receipts and categorizing each expense. At the end of the year when it’s time to do your taxes, you can simply share your Quickbooks with your accountant. Easy peasy!
Keep a Business Budget
Aka: keep track of your income & expenses each month so that you have a clear idea of where money is coming in and where it’s going out.
You may find that you’ve been double-paying for a subscription, are paying for something you’re not actually using, or that you’re making more money in an area you didn’t expect! It gives you information to begin using to your advantage. #yesplease!
Set Aside a Day Each Month to Review Everything
For me, this is usually the first day of the month. For other entrepreneurs I’ve talked to, it’s every Friday! Choose a day & rhythm that works best for you.
If you can get into the habit of knowing that on a certain day, each month, you’ll be reviewing your numbers, it’s a lot easier to get into the rhythm of things.
Put it in your calendar. And then, have fun with it! Blast some fun music, make your favorite drink, have a dance party. This is a money-date that will show you where you can be bringing in even more income for your biz!
Once you’ve done these steps, you’re on track to feeling more organized!