What are the best practices for managing finances as a self-employed business coach?

In my experience managing finances requires discipline and strategic planning. Here are some simple but practical examples that have worked for me 1. Separating Personal and Business Finances Opened a separate business bank account to keep personal and business finances distinct and using a dedicated credit cards for business expenses. Budgeting Estimating my monthly and yearly income and expenses and allocating funds based on the save first principle, where i set aside money for savings before paying bills and making other purchases Track Expenses: Keeping detailed records of all business-related expenses. Using an accounting software or apps to simplify expense tracking has come in handy. This has helped in monitoring your cash flow

When getting started, here are three crucial steps to keep in mind: 1. Share your plans with your CPA. Begin with the end in mind and structure your business in a tax-efficient manner. 2. Track your income and expenses diligently. As you reinvest in your business, you will very likely diminish your taxable income substantially. 3. Focus on your customer, not your bank account. Yes, it's important to have sound business structure, but fancy structures and new business credit cards don't matter without a happy, growing client base.

One of the first things a business owner should do is decide how they'll track the income and expenses in their business. Tracking your numbers is the first step to optimize your business for growth. While you can start by using a spreadsheet, using an accounting app will help you have better visibility of what's happening in your business. A spreadsheet is better than nothing at all, but accounting software will allow you to run reports that will help you manage your business. It's crucial to track your income and expenses because if you don't, you won't have the data you need to make decisions that will help you grow. You could also lose out on valuable tax deductions that will lower your tax liability.

Investing in yourself is critical when it comes to growing your business. Confidence comes through action and growth. If you are working to grow, then you will be confident, and your clients will feel your confidence. Often times, reinvesting in your own personal development is tax-deductible. Also, it's important to grow both in your industry and outside of it. Being specialized is important, but don't niche so deep that you neglect other important areas of growing your knowledge.

When it comes to finances, remember this: simple scales and fancy fails. Here's what I recommend: 1. Keep an excel file. Income on one tab, Expenses on another, and a summary on a third tab. Keep it simple. 2. Before adding an Expense (i.e. buying something), write out all of your potential foreseeable expenses and rate them from 1-10 in priority. This way, you can clearly observe what is most important and prioritize accordingly based on your revenue or budget. 3. Set calendar reminders for auto-renewing subscriptions. Often times, purchasing a SaaS tool for 12-months is cheaper than paying per month. In the event you decide to cancel the service next year, make sure you are alerted by your calendar before it auto-renews.