When I go over expenses with clients, they often wind up telling me that they are surprised to see an expense on their account. I’ll either hear “I thought I canceled that,” or worse, “I don’t know what that expense is.” The last thing you want is to find out you’re paying for something you don’t know about. If you don’t know about it, odds are it isn’t doing you a whole lotta good. And if you thought you canceled it, that means you already reached the conclusion that an expense was unnecessary. So how can you avoid these unpleasant surprises?
Let’s Get Organized.
(2:11) How do you build that into your routine? I have found when there are things that frustrate me, creating a routine around it makes it more tolerable. And what could be more frustrating than the possibility of losing money? We recommend you set aside time every Friday, or at least twice a month, to go over your expenses. Be thorough about it. Yes, going over finances is also frustrating. It’s not as rewarding as making sales, that’s for sure. But checking your expenses is the most sure-fire way to ensure that you won’t wind up falling victim to surprise expenses.
The good news is, if you’re following the Profit First Model, you won’t have to go over 12 months of finances. Profit First recommends you break things up into “small plates.” That means, break up your finances into different smaller accounts, all designated for a specific purpose. This makes your expense account a much smaller plate than your total finances to go over. And by going over your finances regularly, you make it so that you only have to worry about 7 to 15 days of expenses at a time,
Fortune Favors The Prepared
Nothing makes profit feel more hopeless than a surprise expense. But it isn’t hopeless. Profit is a choice. And by carefully monitoring your finances, and by following the Profit First “small plate” philosophy, you can make that choice.
To watch my full video, click below!
We will be offering a lot of advice on our page here, but we also would be happy to help you out on a more personal level. Feel free to hit us up if you need help preparing your taxes.
You can watch ALL of our Profit First Tip videos by SUBSCRIBING to our YouTube Channel.
More of a blog person?… THAT’S OK! We keep our INCITE TAX BLOG full of all of the same amazing content that you would find on our YouTube Channel, including John’s special guest interviews, such as the one with the founder of the Profit First System, Mike Michalowicz!
Follow us on…