How To Manage Your Coaching Business Finances
This is a guest post written by Kevin Tomlinson. Want to contribute? Check out the 2018 publishing calendar.
Managing your coaching business finances may sound like a rocket science for many people, but the truth is it can be really easy if you use the right tools. Using the right tools will help your business to survive the industry competition and volatile economy.
The ultimate concern of every business, whether big or small, is how to manage their finances with professional finesse. Financial intelligence will help you to survive ups and downs that spring up in your business. To turn your startup coaching business into a success story, you need good financial management intelligence.
Below are five tested and proven ways to get this done:
Organize and automate the way you manage invoices
It's important to use software that can help you to create your weekly or monthly invoices to your clients without issues. This will prevent you from spending hours every week or month to search through your folders looking for clients you need to invoice, the invoices that are overdue or the status of the invoices you have sent previously etc.
Use software that will create new invoices, shows the current status, streamline and automate your invoices. You will never regret using great software. There are quite a few options to choose from for small business, such as Quickbooks and FreshBooks.
How you manage your expenses is very important to the health of your coaching business and you really need to be organized and consistent about this. One of the biggest concerns of most organizations is how to manage their expenses. If you don’t learn how to manage your weekly and monthly expenses, before the end of the year, you may run out of business due to lack of funds.
As a business owner, your expenses should be lesser than your profits. Your business will collapse if you are spending more than you make. Thus, the keyword here is to learn how to manage your expenses.
Monitor and measure performance
Keeping an eye on the movement of your money is very crucial, whether you are spending small or large amounts. Always look at your current organization’s financial performance and compare it with previous financial statements.
This will help you to effectively project your future cash flow, revenues and expenses. Monitoring and measuring performance will no doubt enable you to make informed decisions about your coaching business growth.
Take care when expanding
If and when you decide to expand your business, make sure it is done wisely and gradually. It could be disastrous to quickly and drastically push large sums of money to expansion without doing a background research or check about the process.
Keep in mind some of the essential steps needed to succesfully expand your coaching business like building a sales funnel, using a formidable customer management system, creating a client loyalty program, researching the competition and trying to stay ahead, building an email list, identifying new opportunities in the coaching industry, leveraging global platforms and forming strategic partnerships.
Plan your taxes
Planning how much tax to pay and when to pay it is very important. Planning your taxes will help you to manage your cash flow, save yourself from unnecessary stress and worry, avoid penalties for late payment.
Try everything possible to make your tax payment on time, so that you will never be constrained to pay any interest or penalty. Consult an accountant to audit your coaching company’s account who can explain the taxes your business owes, as well as things you need to do to reduce the taxes.
If you are indebted to financial institutions, they may provide you with debt settlement strategies that will enable your business to keep growing to greater heights. The best way to reduce tax costs by paying some bills, salaries and emoluments ahead of schedule, buying additional equipments/ items your business needs etc. Reducing taxable income remains of the efficient ways of saving money on your tax payment.
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About Kevin Tomlinson
With over 10 years in the financial vertical, focusing mainly on debt, Kevin Tomlinson is an experienced writer with the best tips and tricks for dealing with the debt of any sort. Kevin works best with debt settlement, debt consolidation, tax debt relief and student loan debt.