We all know the wedding industry has been taking off since the sort-of end of the shutdown that started in 2020.
Money’s coming in hot, money’s flowing out left and right. People are dropping deposits and employees are needing to get paid.
“But I have cash in the bank!” you might be thinking.
Cash in the bank does not always mean we are at a net profit each month or each quarter. If you’re ready to incorporate bookkeeping organization to your venue, but you don’t want to hire just yet, I am here to give you some starting tips.
*Take what you need from these tips. They might not apply to everyone but I love to cover the basics.
Separate Personal and Business Spending
I know it’s easy when you’re making an Amazon order or Target run to just throw something for the business in your cart. Or you might be getting supplies for the venue and need something off your personal shopping list. That’s the easy way to shop but it’s not the best practice. It is much better to have separate transactions and swipe two cards than figure out receipts later.
Have an Income and Expense Tracker
At the end of each month (this is important… not once a year or once a quarter..), you need to pull your business bank statement and look at the cash coming in and going out. If yours is a micro-business, or you’re just starting out, the simplest way to track it is on Excel or Google Sheets. Type out each income and expense by date and amount. At the end, add up all the income into one sum and all the expenses into another sum. This will give you an idea of the net profit you made that month. If it is a negative number, it doesn’t necessarily mean a net loss. But take a closer look at those expenses to know which category you spend the most in.
P.S. if you need an expense tracker I have one here
For tax purposes (and for the purpose of being the best CEO of your business), you need to categorize your expenses. It makes tax season 700x easier, but also gives you detailed valuable insight of where your money is going. Common categories include: Supplies & Materials, Meals, Office Supplies & Software, Advertisement, Rent, Utilities, and Payroll Wages. When you break down those numbers and can compare it to industry standards, you will know where you’re spending too little money or too much money. You can be your own CFO Advisor to your business if you take a look at where you’re spending money.
Educate & Ask for help
There are so many resources on Google. Take a look at YouTube, QuickBooks articles, free courses, blogs and so much more. This is not a new concept & there will always be a plethora of accounting resources. Also ask for help in your networking and friend groups! If they’re in the same industry they have likely run into a similar problem.
And finally, as a Fractional CFO myself, I would be silly to not mention that you can reach out to me anytime to ask questions; whether you are looking for help or ready to hand off the bookkeeping entirely 🙂