Try Habit Stacking to Cement Your Financial Routines
Handling the money stuff in your small business can be a serious brain drain, right? But guess what, there’s a way to make it less dreadful and even kinda fun. The trick is to stack good financial habits and give yourself little rewards along the way. It’s like building a routine that feels good and makes you want to keep doing it.
Let’s break it down. I’ll show you how to turn your business bookkeeping into manageable, bite-sized tasks with fun rewards to keep things interesting. By following these steps, you’ll catch yourself actually looking forward to handling your business finances instead of running away from them.
Weekly Financial Habits: Start Small, Stay Consistent
Your weekly financial check-ins don’t need to be time-consuming. The idea is to stay on top of things with small but consistent habits to keep your cash flow healthy.
Here’s what you can focus on each week:
- Send out invoices: Make sure all the work you’ve completed is billed. Don’t let invoicing pile up – it’s the lifeblood of your business!
- Check your bank balance and transactions: Whether it’s daily or weekly, get into the habit of reviewing your business account for incoming and outgoing transactions. This simple habit helps you quickly spot any discrepancies or unusual charges.
- Move funds to savings or profit accounts: If you have a profit or separate savings account for BAS or emergencies, move what you need to keep in the green!
🩷 To make this habit more enjoyable, stack it with something you love. Make it small because this treat will be a weekly occurrence. Get yourself a treat from the bakery you love and enjoy it outside with a good cup of coffee or a podcast.
Monthly Financial Habits: Take a Deep Dive
It’s time to go beyond the basics and take a more in-depth look at your business’s financial health. This monthly review helps you spot potential issues before they become bigger problems.
- Pull reports: Review your Profit & Loss, Balance Sheet, and Cash Flow statements to see how your business is performing. Look for unexpected dips in income or a higher than usual expense. This way you have a chance to take action and turn things around before it’s too late.
- Set goals for the next month: Based on your review, set yourself some goals. Are there any expenses you can cut? Can you increase income in a particular area? Planning helps you stay proactive rather than reactive.
- Ensure obligations are covered: Make sure you’re putting aside money for your liabilities, so you’re never caught off guard when it’s time to pay.
🩷Reward yourself for this deep dive with something you enjoy. Whether it’s taking a long walk, meeting a friend for lunch, or treating yourself to a new book, find a way to celebrate completing your monthly money tasks.
Quarterly Financial Habits: The Big Picture
Your quarterly check-in is your opportunity to review how you’ve been tracking against your goals and assess the overall direction of your business.
- Full financial overview: Take stock of where you are compared to where you forecasted you’d be. Are you on track with your revenue targets? Have expenses crept up?
- Review your BAS and tax obligations: Make sure everything is in order for your quarterly Business Activity Statement (BAS) and any other tax reporting.
- Plan for the next quarter: Now is the time to strategise for the next three months. What needs adjusting? What are the opportunities for growth?
🩷To keep this quarterly check-in feeling fresh and exciting, pair it with something bigger, like a dinner date, or a special activity. By associating this more intensive review with a reward, you’ll fuel your financial motivation!
Why Habit Stacking Works
Habit stacking is a powerful way to integrate any dreaded task into your routine. Why? It leverages the brain’s natural tendency to form habits when tasks are repeated consistently and when coupled with a little reward, it’s an instant dopamine hit!
Give it a try and reap the rewards! Staying on top of your finances prevents nasty surprises, improves cash flow, and makes long-term growth more achievable.
Managing your business finances doesn’t have to be scary or overwhelming. With the right approach, you can transform it into a habit that fits seamlessly into your routine, and even something you look forward to! Try stacking small financial tasks with enjoyable rewards, and watch as your money management becomes a stress-free, consistent part of your business.
If you’d like more guidance to stay on track with your finances, let’s connect on LinkedIn! Or join my Numbers List to get practical tips and insights delivered straight to your inbox.