> How can I manage my business?

How can I manage my business?

Posted at: 2014-12-08 
If you don't know where your money is going, there is no way you can manage your business effectively. Good bookkeeping/accounting software will tell you what you are spending the money on, which will tell you whether you are pricing your services correctly, where you are misspending your money, etc. Just know, if you are not paying your sister and mother their earnings but are putting any money in your pocket from the business, you are completely mismanaging the business - the owner always gets paid last after all expenses, including salaries. If the three of you are co-owners, then you should each be putting the same amount of money in your pockets each month.

Stop doing what you've been doing for purchases and write down EVERY PENNY you spend. Without knowing where your money is going you can't tackle the issue of fixing the problem. Write down every cup of coffee bought, every dinner out, literally ANYTHING that you're spending. People who blow through a ton of money each month are doing something wrong. With $6000 coming in you should be putting at least a quarter of it into a savings account.

Suggest you invest in some accounting software and keep track of how much money is deposited and spent from the bank account.

Try using a budget, and keeping track of every dollar taken in and spend.. It is easy to do.

Learn how to effectively analyze your operating cash flow for your small business

I have a small cleaning company. We cleaning around 20 houses every 2 weeks we make around $6000 per month we are a crew of 3 persons my mom, sister and I. But I dont know where the money goes I need some help managing more my money I make a decent amount. I'm always overdraft in my business account. I don't have enough money to pay my mom and sister there actual salary. Please help me I need some tips of what I could do to manage it better.