Setting up Simple Financial Management Dearborn MI

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.

Ted Feight
Creative Financial Design
Toll Free (877) 566-9301
2000 Town Center, Suite 1900
Southfield, MI
Expertises
Ongoing Investment Management, Retirement Plan Investment Advice, Middle Income Client Needs, Women's Financial Planning Issues, Helping Clients Identify & Achieve Goals, Charitable Giving - Trusts & Foundations
Certifications
NAPFA Registered Financial Advisor, CFP®

Sam Fawaz
Y.D. Financial Services, Inc.
(734) 447-5305
47969 Inveraray Road
Canton, MI
Expertises
Tax Planning, Divorce Planning, Planning Issues for Business Owners, College/Education Planning, Ongoing Investment Management, Planning Concerns for Corporate Executives
Certifications
NAPFA Registered Financial Advisor, BBA, CFP®, CPA, MST

Christine Isham
Northern Financial Advisors, Inc.
(248) 985-1632
26111 West 14 Mile Road, Suite 100
Franklin, MI
Expertises
Ongoing Investment Management, High Net Worth Client Needs, Planning Issues for Business Owners, Advising Medical Professionals, Planning Concerns for Corporate Executives, Women's Financial Planning Issues
Certifications
NAPFA Registered Financial Advisor, BS, CFP®, EA

George Papadopoulos
George Papadopoulos, CPA/PFS, CFP
(734) 929-6405
39555 Orchard Hill Place, Suite 600
Novi, MI
Expertises
Ongoing Investment Management, Planning Concerns for Corporate Executives, High Net Worth Client Needs, Retirement Planning & Distribution Rules, Tax Planning, Advising Medical Professionals
Certifications
NAPFA Registered Financial Advisor, CFP®, CPA/PFS

Wayne Titus
AMDG Financial
(734) 737-0855
684 Deer Street
Plymouth, MI
Expertises
Ongoing Investment Management, Planning Issues for Business Owners, Women's Financial Planning Issues, Charitable Giving - Trusts & Foundations, Estate & Generational Planning Issues
Certifications
NAPFA Registered Financial Advisor, AIF, AIFA, CPA/PFS, CISA

Sam Fawaz
Y.D. Financial Services, Inc.
(734) 447-5305
3000 Town Center Drive, Suite 2235
Southfield, MI
Expertises
Tax Planning, Divorce Planning, Planning Issues for Business Owners, College/Education Planning, Ongoing Investment Management, Planning Concerns for Corporate Executives
Certifications
NAPFA Registered Financial Advisor, BBA, CFP®, CPA, MST

Bert Whitehead
Cambridge Connection Inc.
(248) 737-7090
26111 W 14 Mile Rd Ste LL6
Franklin, MI
Expertises
Advising Entrepreneurs, Financial Issues Between Generations, Middle Income Client Needs, Advising Medical Professionals, Real Estate Investments, Tax Planning
Certifications
NAPFA Registered Financial Advisor, JD, MBA

Walter Kerrigan
Institute for Financial Planning, Inc.
(248) 473-0400
39570 Westminster Circle
Novi, MI
Expertises
Ongoing Investment Management, Helping Clients Identify & Achieve Goals, Advising Medical Professionals, Retirement Planning & Distribution Rules, Women's Financial Planning Issues, Retirement Plan Investment Advice
Certifications
NAPFA Registered Financial Advisor, BA, CFP®

Kelly Adams
Harbor Light Planning, LLC
(248) 344-9616
42705 Grand River Avenue, Suite 201
Novi, MI
Expertises
Helping Clients Identify & Achieve Goals, Middle Income Client Needs, Newlyweds & Novice Investors, Women's Financial Planning Issues
Certifications
NAPFA Registered Financial Advisor, BA, CFP®, EA

Karen Norman
Norman Financial Planning, Inc.
(248) 408-1990
802 East Big Beaver Road
Troy, MI
Expertises
Ongoing Investment Management, Cash Flow/Budgets/Credit Issues, Middle Income Client Needs, Retirement Planning & Distribution Rules, Women's Financial Planning Issues, Retirement Plan Investment Advice
Certifications
NAPFA Registered Financial Advisor, CFP®, MBA

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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