Do you ever put off looking at your finances because you’re worried about what you’ll find? Or you’re not quite sure what you should be paying attention to?
You’re not alone.
But here’s the thing: Tracking gives you data. Data helps you make informed decisions.
It is so important to track the right metrics in your business, especially when it comes to your finances. In order to increase your revenue, you have to know exactly what is coming in and out of your business.
It’s important to keep your eyes on your money regularly. One way to do that is to set a money-related focus each week. What is the one thing you need to do to move closer to improving your financial situation? Is it getting your sales page done? Calling a bookkeeper? Reaching out to a new lead? Schedule that before you schedule anything else.
Another thing you can do is practice Financial Friday. Block off time every Friday to check in on your money (what’s coming in and going out).
Here’s a checklist to help get you started:
- Update bookkeeping spreadsheets
- Check-in with month-to-date numbers
- Other _________________
- Adjust plan to meet money goals
- Pay yourself
- Process payroll
- Pay invoices/ bills
- Send / follow up on invoices
- Check auto payments/review statements
- Transfer profits and taxes to savings
- Send receipts/info to bookkeeper (if needed)
- Do mindset work around money
If you aren’t tracking anything, start with tracking your revenue.
Tracking revenue helps in a few ways.
When you track revenue regularly, you know how close you are to reaching your goals. That means you can make adjustments. If you realize you need a couple more people to join your program to meet your revenue goal, you have added incentive to do more outreach. If you see that your revenue is down, you can decide how you want to make things up or if you will change your goal.
When you track revenue, you start to see trends. For a long time, I took my annual revenue goal and divided it by 12 to see how much I needed to make each month. The thing is my business doesn’t work that way, and I bet yours doesn’t either. Every July I’d panic because I was barely bringing in any money, but September was a big month. Knowing that helped me plan ahead (and not panic).
Getting in the habit of Financial Friday has helped my clients bring in more revenue, cut expenses they didn’t need, and save for big, upcoming expenses. Even better, they got more confident about money — and made better, data-driven decisions for their businesses.
Schedule a block of time for your own Financial Friday, every week, and start tracking!
An effective way to block off time to track your finances is during a Focus Session. Join us today and get it done!