Grant Cardone says “money loves attention” and he’s not the only one who’s massively successful and who will tell you to be very disciplined with how you manage your money. In fact, most successful people will say “If you’re not careful with money management, you won’t be able to succeed”–that’s deep. As a result, I want to make sure you pass by this step with flying colors, so I’ll be showing you how to create a business budget using Everydollar.
In a previous article, I talked about how to create a business budget from a general standpoint. You should check that out if you’ve never created a business budget before. I go thru some things I won’t rehash here. In this post, we’ll be talking specifically about budgeting with Everydollar.
- 1 My Story
- 2 How to Create a Business Budget using Everydollar in 5 Steps!
- 3 1. Determine Income Sources
- 4 2. Determine Fixed Expenses
- 5 3. Determine Variable Expenses
- 6 4. Input Line Items into Everydollar
- 7 5. Add in Your Actual Numbers
- 8 Final Statements on How to Create a Business Budget using Everydollar
I’ve tried nearly everything for budgeting (or it seems like I have–hahaha). I was pretty good at budgeting for my personal finances when I would do it, but for some reason I really dreaded budgeting for business. It seemed overwhelming, and that’s likely because I didn’t have a simple process that worked for me.
As a result, I would continually put it off. I was calculating things in my head, but often times, I would forget about things I needed money for until they came due. To make matters worse, there are lots of expenses in business that aren’t in personal finance, and I was caught off-guard by quite a few things.
…So, when all my money was gone, I’d be frustrated because I didn’t do everything I wanted!
I’ve tried accounting software, spreadsheets, and the old school notebook, but Everydollar is now my favorite tool for budgeting. You can add the app on your phone, create two logins (one for personal and one for business), and you can manage both: at home, in your office, or on-the-go. I love it!
I’ve seen that many other entrepreneurs don’t know how to manage the money that comes in and goes out in their businesses, so I decided to share this method, so you can see if it would work well for you.
How to Create a Business Budget using Everydollar in 5 Steps!
Managing your business budget with Everydollar can be very simple, and I’ll break it down for you into 5 simple steps.
1. Determine Income Sources
As you’re growing your business, your income may range. Sometimes, it might fluctuate up and down: moreso in the beginning. Sometimes, you may switch income sources.
For me, I started my business offering freelance services. I had several clients as income sources. Each income source could be counted in the Everydollar app as a paycheck. You can add as many paychecks as you want: big or small. With business, it’s common to have several income sources (potentially affiliates, various product income, various payment processors, and so on).
Determine what your income sources are and pull all the information together: even if it’s hard copies.
Check Your Bank Accounts
It makes it easier to track your income sources if you consistently use credit card processing, ACH, or digital transactions. Calculating cash income is a little more manual, but still, you can do it. Take a look at your bank balances and highlight or find a way to make it easy for yourself to organize all of your income.
Check your Mailbox and Checks
I get some hard copy checks. Do you?
Check your mailbox and make sure you’re not overlooking any of your money.
Check Payment Processors
If you use Stripe, Paypal or any other payment processors, check your income and see what’s coming in there.
2. Determine Fixed Expenses
It’s also important to be clear about what money needs to go out on a consistent basis–this is called “fixed expenses”. You may have rent, utilities, or other recurring things. If you’re more of a digital business (like I am), then you might need to brainstorm or check your bank balances for subscriptions. Maybe you use things like accounting software, storage rental space, or other things that you pay every month.
Use Your Bank Statements
You can check your bank statements to remind yourself of what payments you’re paying every month. Sometimes, you might forget. Hahaha. Browsing your bank statements can help you to remember the things you’re spending money on. Heck, you might even need to cancel some things that aren’t important, but make sure you’re spending majority of your time making money rather than cutting expenses.
I like Grant Cardone’s 95/5 rule. He says “spend 95% of your time on growing income and 5% on expenses”. Don’t overdue the couponing or looking for coupons. If you REALLY need those things, then it’s likely, there’s really an income problem anyway.
Check Paypal, Stripe, or Places you Pay People From
You might also pay people, products, and services from Paypal, Stripe, or other places. Check your Paypal, Stripe, and even cash withdrawals to make sure you’re recording all of your expenses accurately.
3. Determine Variable Expenses
There’s some things that you don’t pay EVERY month. For example, you might buy a course, sign up for an event, or have something you want to “try” to test if it will work well for you–these are all variable expenses. They’re things you use money on inconsistently, but they’re very important to record.
Think About what Types of Things You Like to Spend Money for from Time to Time
In order to make sure you’re doing your budget as accurate as possible, you want to make sure you’re including as many variable line items as is suitable for your business (especially the ones you know you’ll be spending on in the near future).
Give Yourself Cushion to Give and Save
It’s always a good idea to extend generosity and to save for things that might come up. It’s important to forecast this into your budget. You may not always be able to have money for this before you’re making revenue, but once your cash is flowing, then it’s important to set aside money to give and save.
I personally like to give to causes relevant to my niche because I feel so purposeful about it, so startup entrepreneurs or organizations that help them are places I like to forecast gifts for, and you can decide who you’d like to give more to.
Also, you might need to upgrade equipment, replace things that go bad, or recover from fluke events. It’s important to plan for “rainy days” by saving before they happen.
4. Input Line Items into Everydollar
Once you have an idea of your income, expenses, and savings, then it’s time to start adding the details into Everydollar.
Add Your Income
You can add in each paycheck, and add more line items as you need to.
Add in Your Expenses
You can add in each expense, rename categories, and add new ones as you need to.
Add Line Items for Variable Things
From time to time, you might find yourself adding new line items for variable things–that’s okay it’s all apart of growing, learning, and adapting. The good thing is Everydollar is flexible.
5. Add in Your Actual Numbers
Use your bank statements, payment processing statements, cash records, and other things to input the actual numbers into Everydollar.
Final Statements on How to Create a Business Budget using Everydollar
Once you’re done inputting everything into Everydollar, it will give you a check mark showing you’ve created a zero budget, which means you’ve told every dollar where you want it to go. Congratulations!
It’s important to tell every dollar where you want it to go and to use the self-discipline necessary to only spend what you can. Otherwise, money will wiggle out of your pockets and ideas will weasel their way into your head when someone else wants to tell your money where they want it to go! If you operate like that for too long, before you know it, your money hasn’t achieved the objectives you had for it.
Make sure you’re budgeting your money, and you’ll surprise yourself with how it will continue growing incrementally.
Thanks for stopping by, reading, or watching–whichever you did or all 3. Hahaha.
To get ongoing encouragement and motivation as you grow your business, check out my free Entrepreneur Support Group here.