Strengthening your business finances

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Revenue is not profit

Revenue: Money coming into the business.
Expenses: Costs of operating, both fixed and variable.
Profit: What remains after expenses, at a high level.
Cash flow: The timing of money moving in and out.
Owner compensation: What the business actually pays you.
Tax obligations: Amounts that may be owed depending on structure and circumstances. A qualified tax professional addresses specifics.

Separate business and personal finances

Know your monthly numbers

Remaining cash flow updates as you type.

Revenue

Fixed expenses

Variable expenses

Owner compensation

Tax reserve

Remaining cash flow$0

If the number is uncomfortable, that is information, not a verdict. Most owners see it for the first time and immediately know which line to work on.

Self-employed vs. business owner

Some people are paid for their own labor. Others operate a business that could function beyond their individual effort.

Neither is better. But they call for different planning, and confusing the two makes growth decisions harder.

Documentation matters

This guide is general education, not tax advice. Specific tax questions belong with a qualified tax professional.

Where am I today?

Why this matters