Setting up Simple Financial Management Temple Hills MD

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.

Carolyn Walder
Lifetime Wealth Planning and Management LLC
(703) 519-1254
120 Waterfront Street, Suite 410
National Harbor, MD
Expertises
Ongoing Investment Management, Financial Issues Between Generations, Retirement Planning & Distribution Rules, Women's Financial Planning Issues, Retirement Plan Investment Advice
Certifications
NAPFA Registered Financial Advisor, CFP®

Carolyn Walder
Lifetime Wealth Planning and Management LLC
(703) 519-1254
211 North Union Street, Suite 100
Alexandria, VA
Expertises
Ongoing Investment Management, Financial Issues Between Generations, Retirement Planning & Distribution Rules, Women's Financial Planning Issues, Retirement Plan Investment Advice
Certifications
NAPFA Registered Financial Advisor, CFP®

David Hofstad
Independent Financial Advisors
(301) 772-7411
5711 Euclid Street
Cheverly, MD
Expertises
Ongoing Investment Management, Estate & Generational Planning Issues, Retirement Planning & Distribution Rules, Tax Planning
Certifications
NAPFA Registered Financial Advisor, AIF, CFP®, CPA, EA, MA, MS

Thomas Conway
Connemara Fee Only Planning, LLC
(301) 998-6595
1300 Pennsylvania Avenue, NW - 7th Floor
Washington, DC
Expertises
Retirement Planning & Distribution Rules, Retirement Plan Investment Advice, Investment Advice without Ongoing Management, Estate & Generational Planning Issues, Planning Issues for Business Owners, Planning Concerns for Corporate Executives
Certifications
NAPFA Registered Financial Advisor, CFP®, JD

Scott Walker
Alexandria Financial Associates, LLC
(703) 671-5959
4900 Seminary Road, Suite 105
Alexandria, VA
Expertises
Ongoing Investment Management, Retirement Planning & Distribution Rules, Tax Planning, College/Education Planning, Helping Clients Identify & Achieve Goals
Certifications
NAPFA Registered Financial Advisor, CFA, CFP®

Timothy Wesling
Wesling Financial Planning Services Corp.
(703) 535-8280
101 N. Columbus Street, Suite 402
Alexandria, VA
Expertises
Retirement Planning & Distribution Rules, Helping Clients Identify & Achieve Goals, Ongoing Investment Management, Estate & Generational Planning Issues, Divorce Planning
Certifications
NAPFA Registered Financial Advisor, AIF, CDFA, CFP®, CMFC

Jeffrey Zures
Sanchez & Zures, LLC
(703) 349-0330
700 12th Street, NW, Suite 700
Washington, DC
Expertises
Retirement Planning & Distribution Rules, Ongoing Investment Management, College/Education Planning, Middle Income Client Needs, Estate & Generational Planning Issues, Tax Planning
Certifications
NAPFA Registered Financial Advisor, CFP®, CPA

James Ludwick
MainStreet Financial Planning, Inc.
(202) 448-9032
1425 K St. NW, Suite 350
Washington, DC
Expertises
Cash Flow/Budgets/Credit Issues, Middle Income Client Needs, Real Estate Investments, Retirement Planning & Distribution Rules, Planning Issues for Unmarried & Same-Sex Couples
Certifications
NAPFA Registered Financial Advisor, CFP®

Claire Emory
Clarity Financial Planning
(703) 465-5116
1655 Fort Myer Drive, Suite 700
Arlington, VA
Expertises
Helping Clients Identify & Achieve Goals, Middle Income Client Needs, Women's Financial Planning Issues, Retirement Plan Investment Advice, Ongoing Investment Management
Certifications
NAPFA Registered Financial Advisor, CFA, CFP®, MA, MBA

Lisa Kirchenbauer
Omega Wealth Management, LLC
(703) 387-0919
200 North Glebe Road, Suite 812
Arlington, VA
Expertises
Retirement Plan Investment Advice, Advising Entrepreneurs, Women's Financial Planning Issues, Ongoing Investment Management
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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