One of the best parts of owning a business is the way you get to express your creativity (while properly managing your business finances).
You get to build your dream business from the ground up. As a business owner, you’re constantly thinking outside the box to serve your community and deliver incredibly innovative products and services.
Your brain is seriously amazing, so props to you, friend 👊🏽💥
It takes a truly inventive person to be an entrepreneur, which is probably why you got into business in the first place…you’re a creative genius!
But here’s the thing about a lot of you “creative genius” types. 👇🏽
You tend to get a *little* nervous when you have to start talking numbers.
Whether it’s dealing with budgeting, taxes, bookkeeping, or whatever else – a lot of the time, as a “creative type” you don’t necessarily consider yourself a “numbers person.”
Let’s get one thing straight: there is zero shame if your business numbers intimidate you.
While there’s no harm in sporting your creative visionary hat, to build a business that is sustainable and strong you do have to take your leadership role seriously.
And that means knowing your business’ financial situation inside & out.
The good news is that you do not need to do this alone.
Let’s take a look at five things you can do to start managing your finances like a boss.
And hey, maybe by the end of this you’ll consider yourself a “creative type” and a “numbers person.” 😉
1. Know the Details of Your Business Finances
In some cases ignorance is bliss, but this couldn’t be farther from the truth when it comes to your finances.
You might be thinking “I don’t even want to look at my account. My finances are so messy. I can’t even ask for help ‘cause I’m so embarrassed!”
You are not alone. Getting a handle on your business finances can seem daunting at first.
But – we pinky promise that you’ll feel so much better when you know the details.
If you keep sweeping it under the rug thinking, “Oh I’ll deal with it later when I have time, and I’ve taken that course, or read that book blah blah blah” your stress around money will just keep building and building and building.
Wherever you are in with your finances whether you’re having a tax issue, a scaling issue, or maybe you’re totally in the clear, there is always a plan you can put in place to make sure your business is in the best financial state it could be.
The only way to know the best plan of action is to take an honest look at your finances. Whatever they may look like.
(It’s ok if it’s messy 😉)
2. Don’t Manage Your Business Finances Alone
It takes a village to build a business!
I’m sure when you look at the business you’ve created you can think of a ton of people who have helped you along the way.
Maybe your loved ones come to mind for their endless encouragement.
Or your online community that shows up and engages with your content and lifts you up in that virtual space.
Or maybe you have an amazing mentor who helps you level up your biz in every way!
If the whole numbers thing is totally out of your comfort zone, this is the perfect reason to bring on a financial expert to help you in your entrepreneurial journey of growing and scaling your business.
You might need to work with an accountant or virtual CFO that understands all the different components of you and your unique business.
When your CFO or accountant is in the know about all your financial goings-on they are equipped to help you make the most sound financial decisions for your biz.
Hey you! Yeah, you, the one that’s embarrassed about the state of your business finances!
Don’t let that embarrassment stop you from getting the support you need.
The right CFO or accountant for you will be totally understanding and non-judgemental of wherever you are in learning about this stuff.
They’re the experts so you don’t have to be! 😅
They will empower you with all the data, the numbers, the reporting, the analytics, and everything you need to help you make whatever decision you’re making.
Let them deal with the numbers so you can be the strong leader that your business needs.
3. Create Separate Bank Accounts
Still stressed AF about the thought of someone else looking at those messy financial records? 😬
Here’s one thing you can do before enlisting any professional help!
You need to create separate bank accounts for your personal and business assets.
Doing this simple thing will help protect you from personal liability when working with clients. The more you solidify that divide between the personal and the professional, the more you lower the risk of your personal assets being accessible if ever you run into some legal trouble in your business.
Having these two separate accounts also makes it possible to pay your business expenses from your business account and your personal expenses from your personal account.
There should be absolutely no crossover between this stuff, friends.
No online shopping on your business account card!
None! Got it?
Maintaining this clear separation between the two accounts also makes it easier for you to track your business expenses and write them off come tax season. Yay savings! 🎉
Speaking of taxes…
4. Get Those Taxes Under Control, Girl
“Numbers person” or not, taxes are just part of the gig when it comes to being an entrepreneur.
No, they are not fun, but — they don’t have to be painful!
Taxes are only painful when you’re scrambling last minute to get all your info in order to meet the filing deadline.
Just say no to messy taxes. 👏🏽
Maintaining your taxes throughout the year will help you anticipate what kind of tax bill you will end up getting from the IRS when the time comes.
Again, words to live by: Don’t do this alone! 💛
Having an accountant is the best way to avoid tax mix-ups that could cause you a whole lotta grief.
If you are someone who knows they’ll need this kind of support in order to file their taxes right, remember to budget for this kind of investment.
Investing in an excellent financial foundation will work wonders for your business and give you the freedom to focus on your job, being CEO of a wicked company!
5. Stick to the Plan
Once you’ve gone through all the trouble of budgeting to get some support with your finances then make the best of this opportunity.
Make a financial plan for you and your business and then stick to it.
Maybe that means following a strict budget, or keeping immaculate records, or learning how to invest, but whatever it is hold yourself accountable to knowing what is happening with your money.
You work hard for your money, so keep an eye on every penny that goes in and out of your account.
You can never be too diligent when it comes to knowing your business finances.
If you’ve been ok with just having a gut feeling about where your money is going, make it your goal to start tracking each and every cent that passes through your account.
I know it sounds a little cray-cray, but it’s gonna be sooooo worth it.
Set up a solid system and a strong relationship with a financial expert, and start keeping up with all the ins-and-outs of your business account.
It takes all kinds to make the world go round, so it’s totally cool if numbers are not your thing. You’ve got a ton of other amazing things going for you! 🤩
Creativity might be your strength, but you need to start warming up to the idea of getting up close and personal with your financial affairs.
Remember, you don’t have to learn this stuff on your own, so think about working with an expert. That way you can be confident when making important financial decisions for your precious biz.
You’ll get better at this stuff with time, so don’t be so hard on yourself but do take it seriously.
Mastering your finances is a huge part of protecting your business from any possible legal dilemmas.
Ready to build a long-lasting business? Check out our ready-to-use, lawyer-approved, plug-and-play legal contract templates, so you can upgrade your contracts while staying Profitable & Protected™✨
*The information presented in this blog post is for educational & informational purposes only. This should not be a substitute for customized legal advice from a licensed professional in a private setting. If you need legal advice, please consult with an attorney. This is not a law firm.