| || |
Know where your cash is going in your business regardless of size. Companies with several employees or more may understand this and keeping tabs on petty cash, bills, and more may be difficult. Usually, these companies hire bookkeepers and accountants to help with entering receipts, paychecks, and tax issues.
Individual consultants who advise and provide idea-based services may not consider the different ways cash flow occurs in small amounts. You might not have inventory and if you work from home you may not have rent payments.
Look at this list of expenses that do occur:
This is a partial list of business expenses. Buying coffee can easily cost $ 2.50 for a regular size cup and tip. Do that once or twice a week while chatting with prospective customers and that one cost alone becomes $20 a month.
Add parking, an occasional quick bite out, and $ 75 to $ 100 a month in cash could flow out and away from your business.
Be aware and don't think those expenses aren't important. All expenses are. You need to be aware and compensate because that could add up to close to $ 1,000 annually in small unknown expenses. You may wonder why you work hard yet don't earn what you feel you're worth.