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Setting up Simple Financial Management Allen TX

Sometimes you don’t need a lot of money to start a business. What you need instead is good financial management. If you plan carefully, control spending, and monitor the money that comes into your business and the money that goes out, you can prevent a monetary emergency later.

Richard Alston
New Dimensions Wealth Management, LLC
(972) 996-4767
825 Market Street, Building M, Suite 250
Allen, TX
Expertises
Helping Clients Identify & Achieve Goals, Planning Issues for Business Owners, College/Education Planning, Retirement Plan Investment Advice, Divorce Planning, Advising Entrepreneurs
Certifications
NAPFA Registered Financial Advisor, CFP®, MA

Christopher Troseth
Investors Asset Management, Inc.
(972) 985-7162
5000 Legacy Drive, Suite 180
Plano, TX
Expertises
Ongoing Investment Management, Retirement Planning & Distribution Rules, Planning Concerns for Corporate Executives, Retirement Plan Investment Advice, College/Education Planning, Helping Clients Identify & Achieve Goals
Certifications
NAPFA Registered Financial Advisor, CFP®

David Brunson
Lifeway Financial Corporation
(972) 378-3744
7160 Dallas Parkway, Suite 520
Plano, TX
Expertises
Ongoing Investment Management, Retirement Planning & Distribution Rules
Certifications
NAPFA Registered Financial Advisor, CDFA, CFA, CFP®

Jarrod Upton
Investors Asset Management, Inc.
(972) 985-7162
5000 Legacy Drive, Suite 180
Plano, TX
Expertises
Helping Clients Identify & Achieve Goals, Socially Responsible Investments, Estate & Generational Planning Issues, Advising Employee Benefit Plan Participants, Planning Concerns for Corporate Executives, High Net Worth Client Needs
Certifications
NAPFA Registered Financial Advisor, CFP®, MBA, MS

Alex Stowe
Stowe Financial Planning, LLC
(972) 733-9959
1316 Village Creek, #700
Plano, TX
Expertises
Retirement Planning & Distribution Rules, Retirement Plan Investment Advice, Helping Clients Identify & Achieve Goals, Middle Income Client Needs, Ongoing Investment Management, College/Education Planning
Certifications
NAPFA Registered Financial Advisor, CFP®, MBA

Christopher Currin
Pegasus Advisors, LLC
(877) 799-4647
555 Republic Dr Ste 200
Plano, TX
Expertises
Retirement Planning & Distribution Rules, Tax Planning, Investment Advice without Ongoing Management, Insurance Related Issues, including Annuities, Special Needs Planning, Women's Financial Planning Issues
Certifications
NAPFA Registered Financial Advisor, CFP®

Bryan Lee
Strategic Financial Planning, Inc.
(972) 403-1234
6513 Preston Road, Suite 100
Plano, TX
Expertises
Ongoing Investment Management, Planning Issues for Business Owners, Planning Concerns for Corporate Executives, Advising Entrepreneurs, Divorce Planning, Advising Medical Professionals
Certifications
NAPFA Registered Financial Advisor, CFP®, MBA

Brent Little
Odyssey Wealth Management, LP
(972) 636-5037
6860 N Dallas Parkway, Suite 200
Plano, TX
Expertises
Ongoing Investment Management, Retirement Planning & Distribution Rules, High Net Worth Client Needs, Estate & Generational Planning Issues, Tax Planning, Planning Issues for Business Owners
Certifications
NAPFA Registered Financial Advisor, CFP®, CPA/PFS

John Gay
Frisco Financial Planning, LLC
(469) 252-1249
9555 Lebanon Road
Frisco, TX
Expertises
Ongoing Investment Management, Hourly Financial Planning Services, Investment Advice without Ongoing Management, Retirement Plan Investment Advice, Retirement Planning & Distribution Rules, Insurance Related Issues, including Annuities
Certifications
NAPFA Registered Financial Advisor, CEBS, CFP®, CLU, MSFS

Deidra Fulton
Fulton Financial Planning, Inc.
(972) 248-3807
5068 West Plano Parkway, Suite 227
Plano, TX
Expertises
Retirement Planning & Distribution Rules, Investment Advice without Ongoing Management, College/Education Planning, Middle Income Client Needs, Women's Financial Planning Issues, Hourly Financial Planning Services
Certifications
NAPFA Registered Financial Advisor, CFP®

Setting up Simple Financial Management

Provided By: 

Don't Launch Your Start-Up Until You Have the Finances Under Control
By Nora Caley

Sometimes you don’t need a lot of money to start a business. What you need instead is good financial management. If you plan carefully, control spending, and monitor the money that comes into your business and the money that goes out, you can prevent a monetary emergency later.

Besides preventing disaster, there are other reasons for sound financial management. If you know how much money your business is making and where the money is going, that can help you estimate your future profits. By making accurate projections, you will be able to decide whether you should expand your business. Your well-organized and accurate financial records might help you get a loan or other funding.
Financial management also makes it easier for you to pay taxes. If you are a sole proprietor or you are self employed, you don’t get paychecks with taxes withheld. Instead, you have to pay estimated taxes four times a year, and financial management makes it easier to figure out how much to pay.

Another reason to maintain good financial management is the analysis helps you see whether your business is succeeding. Sometimes when a business fails it’s not due to a lack of sales, but the inability of the business owner to control how much money the company spends, and how quickly the company gets paid for the products and services it sells. Proper financial management will help you keep track of these important details.

Getting Started

First, make sure you separate your business funds from your personal funds. That means different credit cards for your business and your household, and separate checking accounts.
If you have written a business plan, you might already have a projection of your business’s income and expenses for at least the first year. You can use this part of your plan as a guide for the more detailed financial plan you will write.

If you didn’t write a business plan, or if the financial pages of your plan didn’t include a lot of specifics, then write a cash flow analysis for your business. Start with a spreadsheet. If you have Microsoft Excel, set up a spreadsheet in which the column headings are months, and the rows show money in and money out.

The first row should be Cash On Hand. That’s your starting point, the money you have in the business checking account. The next few rows could have titles such as Cash Sales, Collections from Credit Accounts, and Other Cash Injection. On the bottom of that section, put a row called Total Cash. This section shows cash you actually have, not customers’ payments that you expect will arrive in the mail or be deposited into your account soon.

The next rows show the cash paid out. These rows include purchases of raw materials or ingredients, office supplies, advertising, gas mileage, shipping, and other categories. Don’t forget to include loan payments, credit card fees, and checking account fees. On th...

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