Getting your money organized, knowing where it is going, where it is coming from and what you can plan for in the coming years gives you confidence and muscle. You will start to feel less guilt for spending, and more confidence when updating your prices.
I like to look at my business year in quarters. I feel like it is less overwhelming!
Just recently I started doing my taxes quarterly and hired an amazing CPA to help navigate the world of taxes and all things monetary gain, or loss. I like to be good at many things, but taxes, that is a hard pass.
If you are new to the world of running your own business I will tell you the simple rule I learned: no matter if you are a sole proprietor or a limited liability corporation, you need to know how much money is coming in and how much is going out. You should be able to tell me your gross [everything] and net [everything – expenses] income from each month!
I use Google Sheets, set up a tab for each month, record income, then what I spent. See, money coming in and money going out! Note: I also document milage! Something I must also record that you don’t see on this sample is prints sales, course sales, phone, and internet. Ask your tax expert how you should document those, I do it at the end of the year!
Task Number 2: Take some time and go through bank accounts, maybe your Venmo, or PayPal and start reviewing what your monetary standing was for quarter 1 (January – March).