As with any game in sports, it’s rare that a good offense wins without a good defense to back it up. Your finances are no different.
So how often should You analyze your “game” to determine any weaknesses and reposition resources as necessary? Once a month is the best practice, subject to the unexpected, a flag that could put Your income at risk and elevate expenses.
Having an “A” game in place is good, and having a plan “B” is also recommended for reasons noted above. Here are a few tactics on how to fortify Your game plan:
- Are there other possible revenue streams You could implement
- Ideally you already have and are using a budget, and make sure You include Owner Draws in the budget
- Document all cash purchases to capture any deductible personal or business expenses
- Save consistently for rainy day and/or the emergency funds
- Be as debt free as possible, pay off credit cards regularly if possible
- Rotating credit cards and paying them off affects credit scores in a positive way
Accountancy is all about the numbers, achieving offensive/defensive balance, and being able to quickly adjust to change.
MJB’s Bookkeeping Solutions will work the sidelines to assist You in creating a clearer economic path, so that You can spend your effort and time on what is important.