You’re determined to live your best financial life! You’re going to have your bookkeeping up to date every month, stay on top of your numbers, and finally start paying yourself. This year is going to be your best financial year yet, you just have to figure out HOW to make that happen. That’s where money habits come in. There are five core money habits that every small business owner should adopt. If you keep up with these steps, you’ll have a roadmap to a profitable year.
- Do Your Bookkeeping Regularly. Doing your bookkeeping on a regular schedule, whether you decide to do it weekly, monthly, or more, is the most important money habit you can adopt. Regularly logging and categorizing all your financial transactions in your business has a HUGE impact and only takes a moment of your time.
- Review your numbers monthly. This money habit is all about running a Profit and Loss report every month. Compare the previous month’s report to the current month’s report. When you do the comparison, you start to think critically about your business finances.
- Save for your taxes monthly. Saving for taxes means putting a percentage of your profits aside for taxes. You do this so that you have money available to cover your estimated tax payments. To save for your taxes, transfer 30% of your monthly net income (not your gross income!) to your tax savings account every month.
- Pay yourself every month. Instead of pulling money out of your business whenever you need it, pay yourself a set amount once or twice per month. You should do this every single month, which is why it’s a money habit!
- Clean up your spending every year. Just like material clutter, we can have financial clutter! Decluttering your spending is really important. At the end of every year, you should perform an in-depth spending audit. If you don’t make a conscious effort to carefully go through your transactions, you’ll keep wasting money for another year.
Following these 5-step roadmap can help you get on the path to healthy money habits for your business so you can wave goodbye to bookkeeping overwhelm. To learn more, book a call with us today!