Simplifying business Money Management: Budgeting, Expenses & Savings

Business money management is often perceived as something very complicated – beyond comprehension.
Maybe it's due to increasing expenses, fluctuating revenue, and huge expectations around profit and drawings.
But in reality, it comes back to the basics of money management principles – budgeting, expense management, and savings.
Let me break it down further:

I’ve said this enough – the first step to gaining financial clarity in your business is to draw up that budget. List all your monthly expenses (yes, this means you need to have your expenses paid off monthly rather than yearly). As you list them, you will naturally weigh the necessity of each item.

Expense management for a business can be broader, requiring you to prepare some statements on a monthly basis. But the starting point is essentially to make note of all your expenses as you incur them – whether it’s on an app or a spreadsheet – just do it to become more mindful!

Yes, you need to plan for specific business-related savings because your business has plans too! Plan for growth systematically and set aside money because, let’s be realistic, apart from determination and relentless hard work, your business also needs money to grow!

I know you're thinking I’ve oversimplified it, but money management really revolves around these three pillars. All you need is the willingness to learn and upskill – which you already possess as a business owner!
Go for it and get started. Practise these simple steps for at least 3 months to see the difference.

And when you know you’re ready – get a free 30-minute discovery call with me to take your financial literacy to the next level. This will enable you to use money as a catalyst for long-term business growth by making timely, strategic decisions and drawing the statements you need as a business owner.
 
Written by,
Mrudula Muralidharan
Finance Coach & Founder
Million Goals