picture via look into my eyes
do you know where your money is going? do you know how many sales your business is generating?
it is vital to keep an eye on your business at all times, not only because you need to, but because without knowing this basic information, there is no way to know if you are on the path to grow the business or are simply working to cover the expenses.
a simple spreadsheet will be invaluable in showing you what money you are spending and for what reasons, and what money you are generating from sales.
it is of course not so easy to measure the money in and out because each business is different. for example:
- you may have generated a successful sale, but not have the money in yet (selling on credit)
- you may have spent the money, but not paid immediately (buying on credit)
the following spreadsheet is designed to simply record the money in and out of the business and is not taking into consideration the time differences you might experience such as above.
Money In and Out.xls (48.00 kb)
the sole aim is to know what you are spending on and how much each month.
there is also the ability to compare the month-on-month basis your money in and out and see how better or worse off you are compared to the last month together with a graph in order to enable you to visualise the figures in the columns.
please note that you need to copy, paste and adjust the formula for each month going forward.
an interesting web source i was researching is the business link website www.businesslink.gov.uk. it has plenty of information, which can be very helpful.
please see an example of how a business owner is managing the record keeping of the business: