February Box Theme: Money Management
Do words and concepts such as “inventory,” “cash flow,” and “profit margin” make you slightly uneasy? You’re not alone. Small business bookkeeping and accounting is challenging! Thankfully, learning some key money management skills can help you succeed and keep track of your spending (and maybe even give yourself a raise!). We want that success for you, and that’s why the February Sparkle Hustle Grow theme is money management with guest expert Amy Northard, CPA.
Curious about what managing money correctly can do for your business? Check out these top four reasons to up your money management skills!
You are ready for the unexpected. New business expenses will always pop up here and there, unfortunately. Managing your money effectively allows you not only to know where your bank account numbers fall, but also to put some money aside for those unexpected expenses. From changes in taxes to running out of products or supplies ahead of schedule, managing your money correctly will help you avoid scrambling and panicking when expenses pop up.
You are more aware of your spending. Have you ever crunched your business bank account numbers and end up with a look of surprise? Most of us have been startled to see how much money we have spent in different categories. Managing your money by continuously keeping track of what you spend will help you reallocate funds to alternate categories as necessary. Maybe you don’t need to cut down on mileage – you just need to start making coffee in a to-go mug and packing a lunch!
You will discover just how many services and apps to which you subscribe. Totally serious! Subscriptions via smart phones and tablets are easy to purchase. The price points are usually very low, many coming in at less than $10 dollars per month. At even $5 per month, though, those subscriptions can quickly add up. What began as $5 suddenly becomes $50, and that works out to $600 per year. Crazy, right? Managing your money means keeping better track of these small costs (that can easily turn into BIG costs), and you may discover that you’re able to give yourself a raise or use that extra money to advertise your awesome products/services more.
Budgeting for following quarters/years will be much less stressful. If you have ever tried to blindly budget, you know what we are talking about. Budgeting is a challenge regardless, but having better knowledge of your money will help you plan better for the future. Honing in on your spending through categorizing not only allows you predict and budget your future spending, but can also help you figure out where to cut back or increase your spending.
Money can be a tough topic for small business owners to discuss. Thankfully, your subscription to Sparkle Hustle Grow not only comes with training and professional development on this topic, but access to an exclusive subscribers-only Facebook group. Who knew discussing math could be that fun?! Join our tribe and our February expert – subscribe to Sparkle Hustle Grow today.