Lessons
Course Introduction
01:40 2The Two Magic Numbers
03:17 3Tie The Magic Numbers To Your Product Or Service
01:47 4Restaurant and Product Examples
02:31 5Tools to Help Calculate Cash Flow
03:16 6Should I Get a Bookkeeper?
03:15 7Personal Vs. Business Finances
02:52 8Key Takeaways
02:29Lesson Info
Personal Vs. Business Finances
So since we're talking about cash flow, we have to talk about probably a big elephant in the room, the merging of business and personal finances. It is literally the most probably common thing that I see entrepreneurs do, especially when they first get started. I know I did when I first when I first started my business as well, using my business account to pay my personal things and personal account to pay the business things. And that can truly make the bookkeeping situation in cash flow um issue even worse, Right? Because it's really hard to see was this a business expense? Was this a personal expense? So if this is something that you're still doing, I think this is a great time to start separating your business and personal finances, okay, separating your business or personal finance is actually very easy to do. So all you need to do is open a business checking account, right? Or business savings account, but ideally a business checking account and then obviously you probably alread...
y have your business. I'm sorry your personal checking account okay with these two accounts and this is just a bare bones kind of starting point to separate all of your business income that comes in. We'll go into your business checking account or your business account. Okay From there you will determine how much you need to pay yourself To run your own personal finances. So from your business personal account you may say I'm going to pay myself $1,000 a month That $1,000 a month is going to go from your business account to your personal account. And this can happen just be a transfer. Or you can even set yourself up on a payroll. Right? Um I know I like the payroll system Gusteau, it's very simple to use only a few bucks a month. Or you can always talk to your bookkeeper A. C. P. A. C. What works best for you and then once you're person wants the money from your business account goes to your personal account. Your in your personal account is where you pay for personal things, your personal bill, your rent, your car, note, your student loans, whatever it may be. And then in your business account you're only paying for business related expenses. That's it. That's literally the first step. You need to take two separate your business and personal finances. This is going to be very helpful as you start running these financial reports running, um, reports to determine your profits for the month, your losses for the month, your cash flow. Okay? Because it's very hard to determine what your cash flow is. If you're completely co mingling adding money in adding money out, it makes the books a mess. So if you want to say, hey today I'm going to start separating the business personal finances. That is all you need to do to get started
Ratings and Reviews
a Creativelive Student
I wasn’t looking for a financial class today and accidentally clicked the link during a broadcast. I decided to watch it, since it’s less than 30 minutes. It’s one of the most useful classes I’ve seen versus the low-time investment. This course is jam-packed with practical information but delivered with sensible pacing and no fluff. Ms. Broadway presents each point with infectious enthusiasm and clarity. It’s straight to the point, and easy for anyone to apply to a business of any kind. While I was already using some of the points she makes, I feel that this course can be helpful to anyone who’s not keeping solid records of business income and loss, or trying to pinpoint what products and services are consistently costing you more money than they earn. She’s talking about questions that every business owner should be asking themselves every month. Whether it’s because of challenges in the wake of the pandemic or because you never really had a genuine grasp of managing the financial aspects of your business in way that allows growth, it’s likely not too late for you to start fresh and find ways to maximize your income and/or get a helping hand via software or a bookkeeping service.
Dex Cagan
A nice high-level overview of cash flow that's approachable and easy to understand, delivered with great energy.
Lily Gautro
Student Work
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