Accounting & Bookkeeping

How to Track Your Finances and Accounting

This project guide helps two Sky’s the Limit members work together through four meetings as they collaborate to track your money.

Meeting 1: Assess where you are

Before this meeting:

• Make sure that you’ve had an intro meeting. If you need help navigating your first meeting, visit this  Guide to Your First Meeting.

• Review: Start Up Budget

In this meeting:

• Talk through where you are in your business. Have you made your first sale? Do you have a product or service developed yet? 

• Next, you should review your expenses. The Start up Budget may be helpful in determining where your money is going. 

After this meeting:

• Show your initial budget to a friend.

• Note any agreed-upon next steps.

Meeting 2: Business bank account

Before this meeting:

• Review Business Bank Account article

In this meeting:

• Do you already have a business bank account? If so, are you keeping monthly statements? Are you paying for everything via your business account checks and debit card? 

• If you don’t have one, check with your bank to see what steps are needed to open one.

After this meeting:

• Reach out to your bank or set up an appointment with them.

• Note any agreed-upon next steps.

Meeting 3: Get Paid

Before this meeting:

• Review the Get Paid article and this article on The Difference Between a PO, an Invoice and a Receipt

In this meeting:

• Discuss your options for taking payments from customers or clients. Which will work best for you?

• Discuss and decide on the payment terms that will work best for your business.

After this meeting:

• Create a billing or invoice template and share with your mentor for feedback.

• Note any agreed-upon next steps.

Meeting 4: RCOGN (Revenue, Cost of Goods, Net Profit)

Before this meeting:

• Review Cash Flow Statement

In this meeting:

• Review the important financial definitions in the Cash Flow Statement article and apply them to your business.

• Use the Cash Flow template to determine your revenue, cost of goods, gross profit, and overhead costs.

After this meeting:

• Continue to update your Cash Flow sheet.

• Be sure to mark your project complete, update your business tracker , and start a new project!