Financial Literacy Tips
Did you know April is Financial Literacy Month? It's all about boosting our money smarts and helping us make better financial decisions. From managing money to planning for the future, there are many great articles and resources published this month packed with resources and events to give you the tools you need to take control of your finances.
My TOP tip: Separate Business and Personal Finances!!!!!
This deserves multiple exclamation points and I hope if you take nothing else from this post, you understand why this is so important. Use your business’ EIN to open a business-only bank account. Keep personal and business even MORE separate than the Mississippi and St. Croix Rivers merging (sidebar: this is SO cool to stop by and see if you are ever near Prescott, Wisconsin or Hastings, MN.) Keeping everything separate will help you streamline your bookkeeping, simplify tax time, and pave the way to the next tip.
Track your income and expenses
Track and categorize all business income and expenses! This lays the foundation for accurate reporting and prepares you for the next tip. It also helps you gain insights into your business and reduce your taxes by capturing all expenses and deductions. I highly recommend using QuickBooks Online to streamline this process and stay on top of your finances effortlessly. Stay tuned for QuickBooks info & tips in the coming weeks or reach out for a QuickBooks Training session.
Understand your Financial Statements
Familiarize yourself with basic financial statements like the balance sheet, income statement, and cash flow statement. They provide insights into your business's financial health and performance. You will need to do this for the next tip.
Review Financial Reports Monthly
This is my favorite tip because analyzing your profit and loss statements each month is where we can make a HUGE impact on your business. To list a few perks you will understand your biz inside and out, identify areas for improvement, optimize operations, and maximize profits. For example: we can analyze what marketing efforts are producing, which jobs are making the most profit, or if you need to adjust prices due to inflation.
How Can I Help?
As a seasoned financial analyst with years of experience, I am dedicated to helping businesses thrive! As an Advanced Certified QuickBooks Proadvisor I can help you with QuickBooks training or simply setting up an EIN. Either way I'm here to take the guesswork out of bookkeeping and business analysis. With my expertise and QuickBooks know-how, I'll crunch the numbers, analyze the trends, and provide you with actionable insights tailored to your business goals. Together, we'll unlock your business's full potential!
Ready to understand your QuickBooks and take control of your finances? Let's chat - book a free consultation today!
https://calendly.com/3lakesbookkeeping/30min
Or visit my Proadvisor or Facebook Page for more info.
https://proadvisor.intuit.com/app/accountant/search?searchId=NatashaBradt