3 Integral Tips for Making the Money Matters in Your Business Work Best

As tax time is quickly approaching, I am reminded of just how many small business owners (SBOs) relegate their business finances to the bottom of the stack on their desks all year long. How many of your peers are frantically trying to “get it all together” as the time for filing draws nearer? Or is that you?

As a coach, when I work with SBOs (some new, some not) I find that this quote from Marc Allen’s Visionary Business is so true, especially when it comes to the books and money matters in a business:

“There are no bad businesses, there are only poor managers. A good manager can take any kind of business and turn it around and make it successful. A poor manager can take any kind of business and run it into the ground.”

Now, while we could be talking about operations – and that’s important – when we talk about money matters the theory is critical.

While lead generation and finding new customers may be at the forefront of many conversations in Grow Your Business coaching, training and mastermind groups, it makes little sense if you aren’t handling the financial side of your business appropriately. As in most situations, throwing more money at a problem does not solve the problem. Be smart, take care of your finances – it’s the bedrock of your business. I want to share some secrets to fuel your success.

3 Integral Tips for Making the Money Matters in Your Business Work Best

Bear in mind that this is only the tip of the financial iceberg in your business, but without these three in place, you will, no doubt struggle for a v-e-r-y long time.

1. Keep personal and business accounts separate. Your business should not be treated as your personal piggy bank. By that I mean that using your business accounts or credit cards to pay the utilities for your home, your mortgage or to purchase school supplies for the kids is not a good practice. Not only do the expenses you are supposed to be tracking get muddied up with personal expenses, you will never have a good handle on your business expenses. Use your personal account for personal expenses and the business account and cards for business expenses only.
2. Get your own professionals. Every SBO needs an accountant and an attorney. There is no way an SBO has time to learn and understand the law or the rules and regulations that go along with business ownership. It’s tempting to try – but one letter from the State or the IRS can send you scurrying – and cost you more than if you had these people ready in the wings from the get go. You may be an expert in your field, but unless your field is accounting or law, make the call.
3. Block out money time weekly on your calendar. It could be only 15 minutes or 30. But carve it out in stone to give you time to work on the books. Not only will it keep you on track with accounts payable and receivables and cost you less with the accountant or bookkeeper, you will have insights into the operations of your business. You will see where money comes from, when and how much money is going out, and more telling, what is left over.

Cash flow, which is money that comes in less expenses, is what makes business works and if your cash flow is bottle-necked too much or too often, there is a problem you need to address. Staying in touch with the books is the first way to see the red flags and indications something is amiss.

As I said, this is the very tip of the money iceberg that is your business, but these three tips will save you headaches and heartaches and the stress of sleepless nights.

As a business coach, I don’t want anyone to be their own worst enemy. Don’t avoid that which you don’t like or enjoy. It WILL bite you in the behind sooner or later.

To Your Success!

B^{3 –} Be Bold, Brilliant and Boundless!