Need to get your ducks in a row? Don’t we all sometimes. I need to know though, are your business finance ducks in a row? If not, they should be! No shame, but now is the time to get going on organizing your business’s money once and for all. Let’s dive into a beginners guide to organizing your business finances!

Get your personal finances together

As you go through your business ownership journey, there will be moments where you need to address the company’s most important asset… YOU. You can’t keep the business chugging ahead if you aren’t filling up the gas tank. Say you have already decided to pay yourself. That’s awesome! But do you know how big the gas tank is? You need to get your personal finances (i.e. your cost of living together first and foremost. This will give you a good start when thinking about business finances. 

Get your revenue together

Every company exists to make money. Whatever the company uses that money on is up to them, but the point of having a business is to make money. This is where your revenue comes into play. You need to list out your actual revenue and forecasted revenue, to ensure you know how much money that you will make + how much money that you plan to make. This is very important, because it determines how much your company can spend. 

Get your expenses together

Now that you know how much the company will make, it’s time to determine how much the company will spend to make that money! Tally up all your company’s expenses, including your personal expenses (this can be a portion of your personal finance total, or all of it!), and come up with a total number. 

Combine it all together!

Now, you have your revenue and expenses. It’s time to bring it all together! Break your revenue and expenses into monthly totals. Ensure that every month, your revenue is greater than your expenses. This will ensure that you always have a profit in your business!

Check out all our resources here on our website, including the freebies and podcasts! There is some much good information for you to learn from and grow your business finance knowledge!