🪴 Systems investment (#108)
👋🏽 Hello, Future You.The LL Letter is a seasonal, weekly newsletter about practical finance for values-driven independent workers and business owners. I want the future financial you set up for the best. Below, I soften your CFO brain with curated finance bits from the web, a micro class on a money to-do, and reminders so you are ahead of financial mayhem, often caused by the tax calendar. If this was forwarded to you, sign up here. Missed a newsletter? You can peruse the archive here. 📰 Finance on the www.
☑️ LL Money Do. Use a financial management system to track your business finances. If, like me, you envision a business that supports you with benefits, enough for a comfortable life, retirement savings, additional savings, and the ability to pivot, then you need good, clean data to make all this happen. Without it, planning, receiving outside counsel, and making decisions grounded in your data is difficult. Financial data is best managed in a system that categorizes income and expenses, the option to add users (like a bookkeeper or an accountant), the ability to see profitability, pay bills, track open invoices to clients, synchronize with your bank accounts, eliminate duplication, and find errors. In the bigger picture, it allows you to be a grown business owner with the ability to produce a profit and loss statement and balance sheet when you apply for a loan or want to review your revenue from the previous year so you can measure how you're doing or plan for taxes. This system is your business's financial backbone. It opens up doors for you in ways a spreadsheet cannot. You must invest in this part of your business operations if you haven't already. Some notes about systems suitable for micro-businesses. I'll state the obvious: Quickbooks Online (QBO) dominates, especially for those who will grow in any way—revenue, technology, systems, personnel, mindset. It's also the most expensive. They have a monopoly on the market. You'll need to consider how you like to work and your current and future needs. Regardless, I think the following are worthy of consideration, The bottom line is that you make the best decision possible, and if your business and needs change, you change your system. This is all part of the journey. But ya need a system. ⏰ Reminders. It's mid-year. What did the past you on Jan 1 tell the future financial you that you would do this year? Is it happening? Does it move you forward? Did you pay your 3rd 2024 estimated tax payment that was due last week (Monday, June 17)? Important dates.
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Hello, Future Financial You.
The LL Letter is a weekly note about practical finance (habits, systems, processes, reminders) for values-driven independent workers and business owners (sole prop, LLC, S-corp). I want the future you to be set up right. Subscribe below to get money how-to’s, tips, and reminders so you can stay ahead of financial mayhem.