What to do at the end of the month?
People spend hours worrying about money. It really isn’t necessary.
The first thing to do is to get reality, which I know can be difficult but essential.
To find out what is actually happening. Here is a simple way.
1. Add up all the money that has come into your business. All the money in.
2. Add up all the money out from your business. All the costs or money out.
3. Take away the money out from the money in, so you are left with the difference.
Hopefully it is profit! If it is not, don’t panic, at least you know the figures.
Otherwise, you are in denial which is an uncomfortable place!
Get comfortable with these 3 steps before moving on.
Then if you want to be a bit more sophisticated.
- Ask yourself what worked this month? What brought the money in?
- Or what didn’t work, what did I spend money on, that was more costly than I thought?
- You can then decide what you are going to do differently next month.
Also the perfect time to check if you have been paid. Or owe anyone money?
Lastly, do you have enough money for next month’s bills yet?
Usually takes less than an hour.
It doesn’t matter whether you are doing it on a calculator and the back of an envelope. You have a sophisticated accounts system, just do it!
For help with simple bookkeeping
All the best, Jenny