A financial management system is a critical component to building a profitable business yet many entrepreneurs start businesses without putting one in place. Let’s be honest, you’re in business to make money, right? Then why neglect creating and implementing a system that will help ensure you achieve the results you desire and deserve? Implementing a system to monitor, track and review the numbers will position your business for massive growth.
Putting key foundational systems in place is a proactive approach to building a profitable and sustainable business. Without a financial management system and other key systems in place, you’re setting yourself up for frustration, stress and overwhelm. So, why is it so important to have a financial management system? This system will help you make better informed decisions about which strategies will grow your business and boost the bottom line. It will reveal the real cost of doing business and whether or not you’re charging enough for your products and services.
Below are 5 key steps that will take the complexity out of creating a financial success system for your business.
- Keep your business and personal banking separate. Set up a business bank account.
- Create an annual budget for your business revenue and expenses. Review this budget monthly.
- Decide who’s going to handle the recordkeeping – you or a bookkeeper? Delegating this task doesn’t mean you won’t need to review your financial results.
- Decide on a system (tool) to track, organize and manage your revenue and expenses. (Sources to consider: Wave Accounting, Go Daddy Bookkeeping, Quickbooks, inDinero, Simply Accounting, Mint)
- Set a date to review the financial performance of your business on a monthly basis.