You didn’t start your business to bury your head in spreadsheets all day. But let’s be real: if you don’t handle your money, it will handle you.
Solid financial management isn’t just nice, it’s essential. It keeps the lights on, pays your team, funds your growth, and lets you keep doing more good.
So let’s ditch the stress and get practical. Here’s how to manage your small business finances like you mean it.
Separate Business and Personal Finances
(Seriously, Do It)
Your business is not your personal piggy bank.
Why It Matters:
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Easier tax time.
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Clearer picture of your actual profits.
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Better credibility with lenders and investors.
Do This:
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Open a dedicated business checking account.
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Get a business credit card.
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Pay yourself a set salary or owner’s draw; don’t just raid the till.
Boundaries aren’t just for people, they’re for your money too.
Make a Budget and Actually Use It
A budget isn’t a prison, it’s your game plan.
Why It Matters:
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Helps you plan for big expenses.
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Keeps cash flow healthy.
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Prevents those “where did all the money go?” moments.
Do This:
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Track income and expenses monthly.
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Plan for seasonal changes.
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Adjust when things change…because they will.
Your budget is your business GPS. Don’t try to wing it.
Keep Meticulous Records
You don’t want to be the person frantically hunting for receipts at tax time.
Why It Matters:
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Simplifies taxes and audits.
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Helps you make smart decisions based on real data.
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Supports your loan applications.
Do This:
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Use bookkeeping software (or hire a pro).
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Save receipts and invoices.
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Reconcile accounts regularly.
Good records = peace of mind.
Mind Your Cash Flow
Profits mean nothing if you run out of cash.
Why It Matters:
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Covers day-to-day expenses.
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Handles surprises (because they will happen).
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Positions you for growth opportunities.
Do This:
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Invoice promptly and follow up.
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Build a cash reserve.
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Review cash flow statements monthly.
Think of cash flow as your business’s oxygen. Keep it flowing.
Plan for Taxes
Taxes aren’t optional. Pretending they don’t exist won’t end well.
Why It Matters:
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Avoids penalties and stress.
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Ensures you’re compliant.
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Makes budgeting more accurate.
Do This:
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Set aside a percentage of income for taxes.
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Understand your local, state, and federal obligations.
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Consider working with a tax professional.
Plan ahead. The IRS doesn’t do “whoops.”
Get the Right Help
You don’t have to do it all alone.
Why It Matters:
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Frees you up to focus on what you do best.
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Reduces costly mistakes.
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Gives you expert guidance.
Do This:
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Hire an accountant or bookkeeper.
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Set up your business banking with U of I Community Credit Union and take advantage of all the bennies your banking offers.
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Build a network of advisors and mentors.
Teamwork makes the dream work. Even with your finances.
Do More Good With Your Business
Managing your money isn’t about being boring or cautious. It’s about building a business that lasts. One that pays your people, serves your customers, grows your community, and does more good in the world.
So own your numbers. Make a plan. Stay sharp.
Because your business deserves to thrive. And so do you.
