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.
To find out what is actually happening and that is what we are talking about today.
The first thing:
Add up all the money that has come into your business. All the money in.
The second thing:
Add up all the money out from your business. All the costs.
Yes the third thing:
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 and you are out of denial.
Otherwise you are just loitering in denial and suffering!
Working out your figures, is the first step.
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 make sure everyone has paid you and you have paid all your bills.
Plus can you cover your bills for next month?
So it is quite simple and usually takes less than an hour.
It doesn’t matter whether you are doing it on a calculator and the back of an envelope or you have a sophisticated accounts system.
I don’t really mind as long as you know those 3 figures.
Your money in, your money out and the difference.
That’s it for this month, at the end of the month, enjoy.
For help with simple bookkeeping
All the best, Jenny