3 Simple Things That Busy Entrepreneurs Can Do at the Beginning of the Month to Stay Financially Organized

Keeping your books up-to-date and accurate is one of the best ways to efficiently run your small business. It’s important to know where your business financially stands daily, weekly, monthly and quarterly. But sometimes with all the hats we wear, we often become too busy to stay on top of it to the tee. 

Here are 3 simple things that busy Entrepreneurs can do at the beginning of the month to stay financially organized:

1. Categorize last months transactions

If you have your bookkeeping system set up correctly, your transactions should be automatically syncing into your cloud bookkeeping software. So when you log in, take a look at the transactions and begin to assign categories. Some software allows you to set up automation for repeating types of transactions like payments to your cell provider etc.

So here’s a few examples of how to categorize…

Advertising would be money you spent on Facebook and IG ads…ads on podcast shows, business cards etc.

Bank Fees would be money you spent on monthly maintenance, ATM fees, interest paid on business loans, overdraft fees, etc

Using IRS Form Schedule C is good to use as a resource in terms of categorizing.

If you’re not sure what Schedule C is, I walk you step by step about the form in my Course “How To Prepare Your Schedule C”. I shared so many gems in that class and taught lots of tips and strategies.

2. Review your bank and credit card statements.

Reconcile your transactions and be sure that the bookkeeping program and your statements match up as far as the activity that took place.

3. Perform a monthly check-in

Now’s a good time to total up how much money you made last month and how much money you spent. Then assess if last month was a profitable month or not.

Often times I find that when I’m communicating with other entrepreneurs…when the money topic comes up, I’ll hear things like “I’m not sure how much I made” or “I have no idea where the money went”

This is a huge problem and it’s important for you to fix this now. Not knowing where your money went makes it very difficult to determine if you’re overspending in any particular category.

Not only that, you could be losing out on potential business tax deductions simply because your bookkeeping is unorganized.

So there you have it, three things you can do to at the beginning of each month to avoid your finances being unorganized.