I need help with an overview of my money!

Running a business is all about funds – resources needed for investing, paying your suppliers, paying your employees and at the end of it all, also paying your owners (in the form of dividends). 

The list of parties you need to pay is pretty long if you compare it to the one who brings money in. Your inflows are largely comprised of your customers paying their bills. Other form of income may be interest from deposits, etc. However, let’s face it, those amounts are marginal (unless you’re a bank in which case interests from loans are your main resource for inflows).

As you can imagine, first and foremost, one of the key things is knowing your outflows. Presumably you want to reach a profit at the end the day so as such; you ought to have more money coming in than going out. Understanding how much money you need daily, weekly and monthly to meet all deadlines for payments to be made means you can now start to draft the prices you should ask for your goods and / or services. You need rough estimation of sales to draw the inflows.

Even though you now have an overview of the outflows and inflows, one thing you still should do, is not let it disappear from sight. Always ensure you have the needed money to make next payments. Better yet, as with personal finances, it’s always safe to actually keep some savings for rainy days (when something extraordinary happens, some clients don’t pay up and so on).