1. Keep your personal money and business income separate with a business checking account. Not only will having a business checking account help you keep track of your business earnings but its essential for tax purposes.
2. Track your spending. Keep documentation of your profit, revenue and expenses. You can write them down. Create an Excel spreadsheet. You can use Quickbooks. Which ever method works best for you but by all means keep a paper trail. Save your receipts, other purchases can be tracked by your debit card which will appear on your bank statement.
3. Spend wisely. As a small business owner your resources may be limited, especially in the beginning stages of business (the first to five years). You shouldn’t have a photo-shoot without any inventory. Don’t advertise your business without branded material. The money you’re spending on premature marketing, could have went towards growing your inventory or other promotional items such as a logo, banner, signage, business cards, fliers etc.What good is having a business, if your targeted customer can’t identify your brand?
4. Learn about finance. There are always free, affordable and discounted finance seminars for business owners. Many are held at your local library, small business administration, and tax offices. The topics of classes vary along with the times and dates. Check their calendars to see when the classes are available in your area.
5. Get an accountability partner. You need someone other than yourself who will hold you accountable for your money management. Whether it be a business coach, finance coach, personal business banker, etc.
Bonus: Be sure to invest your money. You want to work smarter, not harder. Make your money work for you. The easiest way to make your money grow is by investing it. When it comes to investing your options are limitless. Whether you invest in stocks, bonds, index funds, etc. The choice is yours.