Setting up Simple Financial Management Romeoville IL

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.

Brian Rezny
Rezny Wealth Management, Ltd.
(800) 618-8577
2287 Foxboro Lane
Naperville, IL
Expertises
High Net Worth Client Needs, Retirement Planning & Distribution Rules, Retirement Plan Investment Advice
Certifications
NAPFA Registered Financial Advisor, CFP®

Robert Gerstemeier
Gerstemeier Financial Group, LLC
(630) 420-6601
4300 Commerce Ct. Suite 300-22
Lisle, IL
Expertises
Retirement Planning & Distribution Rules, Ongoing Investment Management, Retirement Plan Investment Advice, Planning Issues for Business Owners, Planning Concerns for Corporate Executives, College/Education Planning
Certifications
NAPFA Registered Financial Advisor, CEA, CFP®, MBA

Patrick Doland
Reason Financial Advisors, Inc.
(630) 807-9009
1717 N. Naper Blvd, Suite 200
Naperville, IL
Expertises
Ongoing Investment Management, Helping Clients Identify & Achieve Goals, Middle Income Client Needs, Retirement Plan Investment Advice, Retirement Planning & Distribution Rules, Women's Financial Planning Issues
Certifications
NAPFA Registered Financial Advisor, CFP®, MBA

Joseph Alotta
Open Door Investment Advisors, Inc.
(630) 390-8392 - cell
409 North Washington Street
Westmont, IL
Expertises
Ongoing Investment Management
Certifications
NAPFA Registered Financial Advisor, BS, CFP®, CFS, MA, MBA, Other

David Morgan
JMG Financial Group, Ltd.
(630) 571-5252
2301 West 22nd Street, Suite 300
Oak Brook, IL
Expertises
Planning Concerns for Corporate Executives, High Net Worth Client Needs, Tax Planning, Ongoing Investment Management, Estate & Generational Planning Issues, Divorce Planning
Certifications
NAPFA Registered Financial Advisor, CDFA, CFP®, CPA

Cynthia Menker
Contour Financial
(708) 460-3800
9031 W. 151st Street, Suite 107
Orland Park, IL
Expertises
Ongoing Investment Management, Middle Income Client Needs, Retirement Planning & Distribution Rules, Tax Planning
Certifications
NAPFA Registered Financial Advisor, CFP®, CPA, MBA

Sean Sebold
Sebold Capital Management Inc.
(630) 548-9700
400 E. Diehl Rd.
Naperville, IL
Expertises
Planning Issues for Business Owners, Advising Entrepreneurs, Alternative or Private Investments, High Net Worth Client Needs, Retirement Plan Investment Advice, Financial Issues Between Generations
Certifications
NAPFA Registered Financial Advisor, BA, CFA, CFP®, MBA

Mark Gilbert
Reason Financial Advisors, Inc.
(630) 807-9009
1717 N. Naper Blvd, Suite 200
Naperville, IL
Expertises
Helping Clients Identify & Achieve Goals, Retirement Planning & Distribution Rules, Ongoing Investment Management, Tax Planning, Estate & Generational Planning Issues, Planning Issues for Business Owners
Certifications
NAPFA Registered Financial Advisor, CPA/PFS, MBA

William Waight
JMG Financial Group, Ltd.
(630) 571-5252
2301 West 22nd Street, Suite 300
Oak Brook, IL
Expertises
High Net Worth Client Needs, Planning Concerns for Corporate Executives, Ongoing Investment Management, Tax Planning, Retirement Planning & Distribution Rules
Certifications
NAPFA Registered Financial Advisor, CFP®, MBA

Michelle Rozsypal
JMG Financial Group, Ltd.
(630) 571-5252
2301 West 22nd Street, Suite 300
Oak Brook, IL
Expertises
High Net Worth Client Needs, Planning Concerns for Corporate Executives, Retirement Planning & Distribution Rules, Tax Planning, Ongoing Investment Management, Estate & Generational Planning Issues
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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