Funding & Finance

How to Track Your Finances and Accounting

This project guide helps two Sky’s the Limit members work together through four meetings as they collaborate to track your money.

Meeting 1: Assess where you are

Before this meeting:

In this meeting:

  • Talk through where you are in your business. Have you made your first sale? Do you have a product or service developed yet? 

  • Next, you should review your expenses. The Start up Budget may be helpful in determining where your money is going. 

After this meeting:

  • Show your initial budget to a friend.

  • Note any agreed-upon next steps.

 

Meeting 2: Business bank account

Before this meeting:

In this meeting:

  • Do you already have a business bank account? If so, are you keeping monthly statements? Are you paying for everything via your business account checks and debit card? 

  • If you don’t have one, check with your bank to see what steps are needed to open one.

After this meeting:

  • Reach out to your bank or set up an appointment with them.

  • Note any agreed-upon next steps.

 

Meeting 3: Get Paid

Before this meeting:

In this meeting:

  • Discuss your options for taking payments from customers or clients. Which will work best for you?

  • Discuss and decide on the payment terms that will work best for your business.

After this meeting:

  • Create a billing or invoice template and share with your mentor for feedback.

  • Note any agreed-upon next steps.

 

Meeting 4: RCOGN (Revenue, Cost of Goods, Net Profit)

Before this meeting:

In this meeting:

  • Review the important financial definitions in the Cash Flow Statement article and apply them to your business.

  • Use the Cash Flow template to determine your revenue, cost of goods, gross profit, and overhead costs.

After this meeting:


Want to talk to someone who can help?

Sky’s the Limit members are connected to a community of volunteer business mentors, more free tools and guides like this one, and exclusive funding opportunities.