Beginning Balance

It's easy enough to convince ourselves that personal wants are "needs" that we just have to have. In business, the temptation is even stronger -- after all, it can probably be expensed, there are plans for growth, we have to keep up with the competition... However you spin it, most "needs" are really just wants, and our cash is a scarce resource. Recognizing our wants, however, can free us from th...

It's a word that inspires yawns and sends meeting participants to their phones. But, it's something that strong leaders and strong teams do well -- process. Mark and Jesse discuss what it means to have good processes in your business, what they look like, and how to develop good processes. Process improvement doesn't happen overnight, in fact it often happens in tiny, incremental improvements over...

Mark and Jesse chat with their long-time tax advisor Casey Murdock about the importance of tax strategizing throughout the year, what to look for in a good tax advisor, when it's appropriate for businesses to do their own taxes, and more!   Casey Murdock https://www.wealthguardadvisors.com/team/casey-murdock  

Mark and Jesse invite their long-time tax advisor Casey Murdock, or Wealth Guard Advisors, to talk about common myths and misunderstandings business owners have about the tax code as well as legitimate tax saving strategies. Tax can seem like a tedious field, but having good tax strategies can result in big savings. As always, having cash on hand opens up options for tax planning.   Stay tuned nex...

Cash basis accounting works for a lot of businesses, and it has a lot of benefits being simple, easy to understand, and a relatively "pure" way to evaluate the cash position of the business. But for some businesses it may make sense to switch to accrual accounting, where things start to get a bit complicated. Mark and Jesse set out to demystify accrual accounting and break it down into YNAB-equiva...

Mark and Jesse take a break from talking about cash to focus on the "softer" aspects of running a business and, more specifically, a team. But, as these things tend to do, it turns out core values are  everything about running a business, and they directly impact how your day to day business operations proceed.   While very important, core values can be hard to determine, because they are emergent...

Mark and Jesse discuss the role of forecasting in a business' budget, and why many businesses get stuck on "tracking" their finances, for tax purposes, rather than truly budgeting.   Mark Butler CFO https://markbutler.com   You Need a Budget https://www.youneedabudget.com

Jesse and Mark answer the questions -- when do you start paying yourself from the business? How much? Should you take distributions or draw a salary?    Mark Butler CFO https://markbutler.com   You Need a Budget https://www.youneedabudget.com

Jesse and Mark ponder the question: when has business done enough? Enough revenue? Enough profit? When has the business owner taken enough in salary and distributions? The answer may lead you to some uncomfortable questions and answers.   Mark Butler CFO https://markbutler.com   You Need a Budget https://www.youneedabudget.com

How you manage your financial systems is an indicator of how well you manage the rest of your business, says Mark Butler. Long lists of bank accounts, complicated credit card payment schemes... as businesses grow their financial systems becomes more complex, but without careful management, it's easy to let become a jungle that accounting has to hack through every month to close the books. Simplify...

It a fussy word, and almost sounds archaic nowadays, like "balancing your checkbook." But reconciliation is critical to ensuring that your bank account actually lines up with the jobs you assigned to your dollars in Rule One!   Basically, reconciliation is a process in which you compare your actual bank balance to your balance in YNAB. This serves two purposes. First, it ensures that you are enter...

Jesse and Mark wrap up their review of the four YNAB rules as applied to business with Rule Four, age your money. This rule is a consequence of following the first three rules, and it refers to the fact that once you have embraced the rules you will find yourself paying for this month's expenses with last month's money. Maybe even money from two months ago. That's called aging your money, and it's...

Mark and Jesse continue analyzing the problems of small business finance through the lens of You Need a Budget's "Four Rules." Today they explain that Rule Three -- roll with the punches -- is a call to actively, and continually , budget for the business.   The budget is not a static document that gets set once a month, or once a quarter, or yearly, then measured against. Budgeting that way is a g...

Mark and Jesse expand on Rule Two, or "embracing your true expenses." When Mark onboard a new client, he helps them import six to twelve months of prior expenses into YNAB for analysis. With these numbers, Mark and the client can get an idea of the true expenses of the business, including expenses that occur infrequently, whether it's annual insurance premiums or unexpected costs related to operat...

Mark and Jesse discuss how YNAB's Rule Two can help business owners sleep better at night, by setting aside money for their known (and some unknown) future expenses like taxes, insurance, future hiring, and more. No more sweating during tax season wondering what your tax bill will be and how you are going to pay for!   Mark Butler -- the Virtual CFO https://markbutler.com   You Need a Budget https...

Mark and Jesse conclude their discussion of Rule One -- Give Every Dollar a Job -- for businesses by exploring how it can help anxious owners gain control over their emotions around money, cash flow, and what to do with the company's excess cash.   Mark Butler CFO https://markbutler.com   You Need a Budget https://www.youneedabudget.com  

Mark and Jesse continue their deep dive into YNAB's Rule One -- give every dollar a job -- as it applies to businesses. Jesse says "show me your outflows, and I'll show you your strategy." The things a business spends it's money on, is a proxy for the businesses strategy, just like the things individuals spend money on is a reflection of their values.   Mark takes this idea a few steps further, in...

Mark and Jesse discuss Rule One -- give every dollar a job -- for businesses, specifically around the concept of scarcity. There are only so many dollars available at any one time, and often not enough to do everything an entrepreneur wants to do. Mark argues that this scarcity is actually the entrepreneur's best friend, as it drives businesses to get creative about reaching their goals with the r...

Jesse Mecham, founder of software budgeting service You Need a Budget (YNAB), and Mark Butler, a virtual CFO who helps a businesses of all sizes manage their finances, join together to talk about the money issues many small businesses face, and strategies for addressing them. Today, they apply YNAB's four rules of budgeting to the small business, starting with Rule #1: Give Every Dollar a Job.   B...

Jesse Mecham and Mark Butler are launching a show all about small business finance. They will help you solve your cash flow problems, budget effectively, and increase your profits.