Issue link: https://www.massageandbodyworkdigital.com/i/1208028
Ta k e 5 a n d t r y A B M P F i v e - M i n u t e M u s c l e s a t w w w. a b m p . c o m / f i v e - m i n u t e - m u s c l e s . 19 help you build a flexible system to cover the heating bill in the cold months and buy your favorite sheets in bulk when they go on sale. If you are already using software or another method to track your expenses, well done! Now is a great time to be sure you're caught up on this year's recordkeeping. If you have not been tracking expenses regularly, it's time to gather some information to get started. This could mean finding bank statements from your primary business checking account or downloading the account history in a spreadsheet format. If you've been paying business bills and purchasing business items from personal accounts or with cash, gather your paper receipts and any other records you can find. In a perfect world, you would have six months of expense records. But we don't live in a perfect world, so just gather whatever you can without stressing out about it. If your records are a mess and you can only find the last month of receipts, that's OK. Start where you are. Getting a handle on your cash f low may seem daunting at first, but once you get in control of your money, it feels amazing. BEGIN WITH A LIST OR SOFTWARE Make a list of all your business expenses. You can use paper and a pencil, or make a spreadsheet if you prefer. We've created a list of common categories and a downloadable spreadsheet at www.abmp. com/money. (And we'll demonstrate this in the companion video!) I'm a big fan of very simple and affordable software (like Quicken or Banktivity, which is what I use on my MacBook) that looks and acts much like an old-school check register. There are also some web-based options like Wave Accounting. If you have a small one-person massage business, you probably don't need complicated software like QuickBooks. But if you go that route, I encourage you to have a bookkeeper help you set it up and learn how to use it. It really doesn't matter what method you choose, just get started. Scan through your statements and receipts, and record every expense and the amount. Group (categorize) expenses together loosely. Don't get caught up in being perfect. Just get the information organized as best you can. Total up each category, and take a few minutes to consider each. Are there any surprises? Maybe you're spending more than you expected on continuing education but less than you thought on oils. Maybe you've paid yourself more than you realize or nothing at all. Try not to judge your expenditures, just see what they are, as they are. EMBRACE THE LEARNING CURVE Back in massage school, your first effleurage was probably awkward and a little frustrating. Just like hands-on techniques, learning new business techniques takes time and patience. Getting a handle on your cash flow may seem daunting at first, but once you get in control of your money, it feels amazing. The peace of mind that comes with knowing where all your money is going is priceless. In our next column, we'll tackle cash flow management, including how to handle income and expenses, how to pay yourself, and how to pay your bills—like a boss. Allissa Haines and Michael Reynolds can be found at www.massagebusinessblueprint.com, a member-based community designed to help you attract more clients, make more money, and improve your quality of life. Watch "Tracking Expenses" MAKE SURE TO VISIT WWW.ABMP.COM/MONEY FOR ADDITIONAL RESOURCES, INCLUDING DOWNLOADABLE SPREADSHEETS AND INSTRUCTIONAL VIDEOS, AS YOU LEARN HOW TO MIND YOUR MONEY IN 2020.