Have you ever had something come into your inbox that you just know was going to take a lot of energy or possible to stressful so you leave that email for another day? If that’s not you, I am super jealous! For me, when I know something is stressful I have to give myself some time and space to take it all in.
This used to be me with it came to money and my companies finances. I was so overwhelmed and stressed about money that I never wanted to look at things. I used to leave everything to the end of the year and it was awful. It took me a few years to learn to make space and peace with money. I had to lean that f you ignore something it will not go away but only get worse!
In today’s blog post I want to help prevent that closed off mindset of money like I had. I want to help y’all understand your finances and become proactive to build your revenue.
Keep it Separate
I am sure I have said this before and I am 900 million percent sure I will say it again. When starting out open you practice separate checking account. Even if you have not made a single dime do it! The reason is when it comes time for taxes and having to separate out what is a personal expense and business expense it just gets too messy for everyone.
Once you have your practice set up on a legal side, and depending on your counties laws you can take your practice papers to the bank of your choice to open a business checking account. For me, in Austin Texas, I only needed to have my DBA (Doing Business As)to open a checking account.
Next, You can put in your initial seed money.Depending on what you feel you will need to purchases and what you have walked through in your planning you should have a good estimate of your initial seed money. It’s ok if you have no idea. In our Basic Course, I walk you through how to calculate out your initial seed money to start.
One more note on keeping things separate. When you do purchase things for your practice from this account keep receipts and at the top write what it was for. It might say office supplies, advertising, or even meals. Writing the categories in the moment allows for faster expense entering when you need to do your bookkeeping.
Deal with Money Often
I want us all to get comfortable with looking at your budget and money often. And when I say often I am talking about weekly at least. The reason for looking at your finances often is to make sure you are ignoring things and that you are building an understanding of how profitable your practice is. In a few instances, by me looking at my finances often I was able to see how our office was losing money irresponsibly and made changes quickly to prevent large costly mistakes.
Pick one day a week that you can carve out time to look at your finances and track your expenses. For me, every Friday from 10-2 is my bookkeeping and finances time. Sometimes it takes more which is ok- and I can plan accordingly.
During your blocked out time I want you to enter into your accounting software all your week’s sessions or revenue, and then all your expenses for the week. Yes, you can hire a bookkeeper, and in the beginning, I strongly encourage you to be the one looking at all the moeny and truly understanding what is coming in and what is going out. By the end of each week, you can have a great understanding if your practice is on track to accomplish your financial goals and if you need to make any adjustments to the following week.
Action Items for the Week:
- If your bank accounts are not separate- do that today! It will only take 20-30 minutes
- Get in the habit after each practice purchase to write on the top of the receipt what the purchase was for.
- Schedule in your calendar when you will look at your finances and track your income and expenses.