You are mostly likely to repeat pleasurable actions. It's not rocket science is it?
As a friend of mine that owns a business, I'm letting you know, the first week of the month is the opportune time to choose a time to sit down and check how last month went. Before the month gets away from you, and it also give you time to make adjustments if you need to.
I'm trying to gently nudge you, and help you feel supported. Because accountability is priceless. Creating a rhythm of financial practices throughout your month is also priceless, irrelevant of the size of your business.
So if you're unsure how to do a Monthly Financial Review. I have a template for you. A video for you. And articles about why you shouldn't just read this and do nothing here and here. Set a reminder in your calendar for a time in the first week of every month.
Reviewing your business financials, is actually an empowering process, but can feel like drudgery when you start creating the habit. Maybe you could try this... grab a mate who also has a business, run a report each in your bookkeeping system or download your bank statement, pouring tea (or wine), eating chocolate and plug in a couple of figures to the template. Then you ask yourself 3 questions.
(Screenshot that gorgeous artwork of mine, so you have the questions for later. And in case you're wondering, I actually painted it. With real-life paint and paper. And no, I'm not giving up accounting to be a watercolour artist... just yet.)
Ok, so we've established it is that simple, but now you gotta make it fun.
It's game-changing, actually it's life-changing. So can you find pleasure in the process, or joy the outcome?
Did you notice the first question is 'what felt good?' Not just because we want to identify what feels good in our business, or that we naturally seek out pleasure in our lives, but because we will repeat actions that feel good.
James Clear, author of Atomic Habits wrote
"As a general rule, the more immediate pleasure you get from an action, the more strongly you should question whether it aligns with your long-term goals."
What are your long-term goals? Is clarity listed among them? Or being financial well? Being empowered in financial decision making?
After completing this review I've had business owners tell me many things. Here are a couple things I've heard.
--> I didn't know my re-occurring expenses were $500/month! Time to pull those in.
--> This month flew, it felt good and I made more than last month.
--> I feel under-paid for the time, love and energy I've put in this month.
--> It made me happy to see that although I was unsure of starting a group offering, it feels good to do it and to make money that isn't dollar per hour.
--> I didn't earn as much last month, but it will still be enough and I got to spend two weeks of school holidays not stressing with the kids.
My hope is to help you set up a solid financial, foundational understanding of your business, so please let me know how you go.
This time of year, I'm helping my on-going clients feel into and prep for the next year ahead. I'm a fan of making small, simple changes. We set some time aside, review the last year and set up a plan for the next year. Think of it as writing an intentional story for the year ahead in numbers, not words. The story begins with how you want to feel in business and in life, not at the end of the year, but how you want to feel each day, week and month.
This year I am offering a similar process to new clients, please check this out if this is of interest to you.
More of my art... (still not becoming a watercolour artist.) But if you have questions about the Money Plan 2020. Please hit reply.
Lynda James, CPA
Accountant and Business Analyst
Aren't you inquisitive, scrolling down this far... here's a recorded convo for you.
Natasha and I both love helping people discover what really helps them feel well. So here are my thoughts on Financial Wellness.