“A common mistake that entrepreneurs make is checking their bank balance at the end of the month and assuming that what is left is their profit.”
Heads up: your bank balance does not equate to your true profitability. Doesn’t mean that you have all those money in your bank account, you’re free to spend them all you want. No—that’s not your profit yet!
As business owners, we need to get our money management system tied up so that our profitability is optimized. And one way to do that is to keep an eye on your bank account.
My personal tip: I look at my bank account—both business and personal—every. single. day.
I’m not kidding. I’m not exaggerating either.
In this episode of She Means Profit, I discuss why I find monitoring my accounts on a daily basis an essential powerful way to manage my money and optimize my business. I also break down the reasons why you should never think what’s in your bank account is your profit.
Listen to learn:
01:37 Little catch-up from the season break
02:18 Cash Confident: An Entrepreneur's Guide to Creating a Profitable Business
02:50 Cash management system
05:50 2023 Q4 planning and getting ready for 2024 planning
06:44 Checking my bank balance every day
08:37 Mistake 1: Assuming what remains in your bank account is your profit
09:00 Mistake 2: Not paying yourself
10:11 Cash flow vs profit
11:43 Unpaid debts
12:42 Overleveraging your business kills your cash flow
13:36 Accounting methods
15:37 Three ways to work with me