Having a good cash flow system is the key to financial success.
Having your own small business is an opportunity for you to achieve financial independence. However, if you don’t have the right systems in place, that dream will evade you. One of the key systems for you to put in place so that you can achieve your goals financially with your business is a cash flow system. I’ve had the good fortune of being introduced to two systems, one by Dave Ramsey and the other by Mike Michalowicz, author of the book Profit First.
In 2009, my wife and I had the opportunity to see Dave Ramsey live at Financial Peace University. He introduced us to the envelope system for managing personal finances. Fast forward to 2017, and a great speaker, Terry Watson, introduced us to Profit First, Mike Michalowicz’s book. That book blew my mind and created the system we needed to transform our finances. I want to share that system with you today.
Essentially, this simple system involves five checking accounts, with each one having a purpose. One of the checking accounts will be an income account where all of the money you receive and commission as an agent goes into. Then, you will distribute through the other four accounts on a regular basis.
You will have a profit account which is key to making your financial dreams come true. Another account is for taxes. The last two accounts are for your operating expenses and owner’s compensation. With this simple system, you can put yourself in the driver’s seat to achieve financial independence.
Installing a cash flow system for your business allows you to ensure you achieve financial independence with your business. If you’re interested in assessing your business’s finances, cash flow, and additional systems, click this link. Also, if you’d like to have a one-on-one conversation, just send me an email or give me a call. I’m happy to help!
