Does your heart rate pick up a little when you think about your business finances? If you nodded along with that, you're not alone. As a small business financial consultant, I sit across from mission-driven entrepreneurs who can masterfully serve their clients but freeze when it comes to managing money.
Between juggling client work, marketing, and actually running your business, crunching numbers might be the one task that constantly gets pushed to tomorrow's to-do list. Maybe you've even thought, “I’m just not a numbers person." But financial clarity isn't about becoming an accounting wizard, I promise. It's about building a comfortable relationship with your money, one small step at a time.
We'll begin exploring how to transform your relationship with your business finances from a source of stress to a tool for growth. No complicated spreadsheets or accounting jargon required – just practical, actionable steps to help you become the confident business owner you're meant to be.
Business Finances Aren't Your Zone of Genius
(and that’s okay)
Starting a business brings on a whole host of emotions, especially when your passion and purpose are what fire you up. However, when it comes to managing finances, many entrepreneurs stumble around–it’s only natural. However, it's important to remember that every successful business owner once stood where you are now. This initial uncertainty is not a reflection of your capabilities because understanding the ebb and flow of money in your business is not an innate skill.
When something isn’t in our zone of genius (or even our zone of excellence), it eats up more time than we'd like. Such as, a whole day spent attempting to tidy up messy books– been there, done that. But, each snippet of time you spend understanding your financial landscape is a step towards becoming the Comfy Financials Officer you know you can be.
Eliminating the panic of these ⬇️ is the ultimate goal.
“I’m currently on day 3 of trying to organize myself to have my business taxes completed.”
or
“How am I supposed to make sure my account has enough money to pay myself and cover expenses?!”
I know, I know, every coach likes to tout that what they offer will “save” your business. Still, I firmly believe getting comfortable and confident with money is THE thing that creates the most security and stability for your business. When you can dial in on your business's financial inflows and outflows, you can anticipate the low periods (and prepare for them), recognize when you have extra funds, and make more confident decisions about pricing, expenses, and growth opportunities. The world will be your oyster!
Now, is this deeper understanding of your finances just about numbers… absolutely not. It's about seeing your business's future, allowing you to plan strategically and navigate the challenges more easily (because we all know that being an entrepreneur isn’t always sunshine and rainbows). So remember, every step you take towards organizing and understanding your finances builds a stronger foundation for your business's long-term success and your own peace of mind.
Bye-bye, second-guessing financial decisions. And hello to the clear picture of your business's health.
With organized finances, you…
will reclaim precious time once lost to bookkeeping woes.
The souped-up efficiency will allow you to focus more on your passion, which is the reason you started your business in the first place.
will feel lighter as tax season approaches.
Knowing you're prepared and, dare I say… excited to see the full picture of your year's accomplishments can feel like a full 180! (The words excited and taxes in the same sentence?! Yep. It’s possible.)
will view cash flow as a tool rather than a source of stress.
Trust me, you’ll never be “surprised” by your annual Zoom bill again.
With a bit of persistence and the right ambiance to get you through, you'll develop systems that make bookkeeping a smooth, efficient part of your routine… prepare to be comfy with money.
Getting to the Root
All this talk reminds me of Sara.* She was chugging along in her business but couldn’t figure out why her personal credit card balances remained unchanged. Because our business and personal finances are so connected (not co-mingled!), sometimes it’s difficult to see the root of the problem. We dove into investigation mode to find the source. Turns out, it was an issue of interpreting her Profit & Loss statement incorrectly. She thought the business was bringing in more than it actually was.
The next step was re-working some pricing and opening up the calendar a bit more for appointments, and now she’s absolutely killing it. More money coming into the business while business expenses remain the same means what?! More owner’s pay, baby! And as a result… the personal credit card balances started to dwindle. Bada bing bada boom!
But I’m not stopping the blog post here–let’s keep this party going with some strategies to overcome the “I don’t know how much is coming & going” blues. 🎶
Getting Familiar with Your Bank Accounts
Truly understanding what’s coming and going in your business… I’ll say it again… 🗣️ is a skill.
Which can be developed with small incremental steps.
Read: You’re not flawed for being overwhelmed by this, and you’re in the right place!
If you need a few tiny steps to start getting comfortable… try these: 1) Log into your bank account on a weekly basis and look through the transactions. No need to take action; just look. 2) Download your statements at the end of each month. Look at the total inflow and total outflow for the month. Getting used to looking at the numbers can help calm your nervous system and alleviate angst.
Now for some of those small incremental steps…
Separate Business and Personal Money
Remember when I mentioned going into investigation mode with Sara*? It makes it much more difficult to do when your business and personal finances live under one roof. Not only that but if you go through an IRS audit (or a lawsuit) and your finances are co-mingled, your personal funds are subject to the taking. And nobody wants that. So please, for the love of everything holy, have a business checking and savings account.
Note: you don’t have to open an official business checking account with your financial institution–it can just be a secondary personal account.
Schedule Regular Money Dates
I mentioned ambiance before–this is where it comes into play.
Sure, you can just sit down and stare at your transactions, but what’s the fun in that?!
A “date” style atmosphere allows you to create a pleasing environment while tackling something that may not feel so pleasing right now. Have you heard of habit stacking? Where you do something you love while doing another something… such as listening to your favorite podcast while you wash windows. It’s kinda like that.
With Kent and me, we’d pour some wine, turn on our favorite tunes, and have snacks while we talked money. It became something we looked forward to versus dreaded. Goal achieved.
If you’re looking for a place to hang out and listen to some chill music with other small business owners while you plug away at some of your financial to-dos, I’d love to have you join my Financial Co-Working Sessions. You can check out more about those here. If that’s not your jam, no worries. Just don’t forget to put your own money dates on the calendar. “If it’s not on the calendar, it doesn’t get done” …amirite?!
Getting Familiar with the Ins
There seems to be a giant chasm between…
“I have money in my bank account.” and “I know how much money my business brings in and can afford to pay me.”
Here’s how I lessen that divide!
Using Your Bank Statement
Don’t overlook how useful a bank statement can be. It’s a helpful little tool that offers concise information. Each month, head to your business checking account and review your statement, noting these two items: Total Deposits and Total Debits (Withdrawals).
While reviewing the statement, look for the “Total Deposits” line.
This is your gross income, the total amount your business brought in for the month. IMPORTANT: Gross income does not equal your owner’s pay.
Note that number. The goal is to see an average over the months to get an approximate idea of your business inflow.
Example
Jan: $2,200
Feb: $5,750
Mar: $3,700
Apr: $6,200
Total: $17,850
Number of Months: 4
Average = $17,850 / 4
Average = $4,463
Do that same exercise for your total outflow.
Note: Don’t include any transfers to your personal checking account (your owner’s pay). You only want to look at true expenses.
Now, you have a baseline to use for comparisons.
Getting Familiar with the Outs
In simplest terms, business expenses are the costs incurred to operate a business. As you may have guessed, there is more to the story than that.
Regular Expenses
These are the expenses that occur monthly like clockwork. There isn’t much (if any) variance in how much you owe each month.
Examples: Software subscriptions and community memberships
Irregular Expenses
These expenses may occur bi-annually, annually, or vary significantly in amount. Even though annual expenses are technically on a cadence, they still have a habit of creeping up on us!
Examples: Annual license renewals, GSuite, and conferences/trainings
You know those online business gurus who say, “You can run a business for $30/month, and here’s how!” Then, they list the three tech items they use: CapCut, Canva & Dropbox. But they conveniently don’t include any of the irregular expenses.
PSA: Just looking at the regular monthly expenses gives us a wildly inaccurate picture of how much it actually costs to run a business.
Profit or Loss (that is the question)
Now that you’ve looked at the ins & the outs, the most important part of keeping your business running is making a profit. Not to be doomsday, but without a profit, the business goes under.
Here’s how you calculate that…
Income - Expenses = Profit or Loss
Example
Income Expenses Profit/Loss
$2,200 $560.00 $1,640
$5,750 $7,200.00 -$1,450
$3,700 $450.00 $3,250
Losses aren’t inherently bad; they happen all the time in businesses. But if the average is a loss and you didn’t plan for that with hefty savings… it's time to start brainstorming.
In Conclusion
Your financial journey doesn't have to be perfect to be powerful. Remember when we talked about Sara at the beginning? She wasn't doing anything wrong – she just needed a fresh perspective and some simple adjustments to transform her relationship with her business finances. That's all it takes sometimes: small steps, consistent habits, and giving yourself permission to learn as you go.
Whether you start with weekly bank login dates, separate those business and personal accounts, or join the Financial Co-Working Sessions, what matters most is that you're taking action. Each small step brings you closer to being that confident business owner who views their finances as a powerful tool.
Now that you know the ins & outs of your business finances...
Remember, becoming a Comfy Financials Officer isn't about overnight transformation – it's about progress over perfection. And with each money date you schedule and each statement you review, you're building the foundation for a business that doesn't just survive but thrives.
Ready to take that first step?
Grab my "Getting Comfy with Your Numbers" collection – complete with ready-to-use spreadsheets and a checklist designed to make this journey easier. Click here to access the collection. You’re meant to build a thriving business; these tools will help you along the way!
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