There are many systems you can implement in your business but if you don’t have a money system, you’re missing out on a huge opportunity to grow your bottom line. A money system is more than setting up a business bank account. It lays the foundation for how and when money will flow in and out of your business. Think of it this way, a money system is a GPS for how you will achieve your income goals.
Implementing a money system is a proactive approach to building a profitable business because it helps you make better informed decisions about which strategies are working and which ones are not. Below are 5 steps that will take the complexity out of creating a money system for your business.
- Create an annual revenue and expense budget for your business. Break down the annual figures into monthly amounts.
- Decide on a tool to track, organize and manage your revenue and expenses. (Resources to consider: Freshbooks, GoDaddy Bookkeeping, Outright, Wave Accounting, Quickbooks, inDinero, Simply Accounting, Mint)
- Decide who’s going to handle the bookkeeping – you, a bookkeeper, or a virtual assistant? If you’re not handling this task yourself, you definitely want to make sure you are reviewing your results as defined in step 4.
- Set a date to review the performance of your business each month, preferably within the first 3 – 5 days of the month. This review should include looking at your actual revenue and expense versus what you budgeted for in that month.
- Adjust – this step is all about making adjustments to increase your revenue (which may include hiring a virtual assistant so you can focus on revenue generating activities, increasing your prices to hit your monthly revenue goal (budget) or getting rid of any expenses that you are no longer using but continue to pay for.).
Without a money system, it’s hard to know whether you’re on track to achieve your business goals or need to make adjustments.