How’s your budget looking? As we near the end of 2024, there’s no better time to tighten up your business finances. At our latest round of Lioness Networking, entrepreneurs gathered to discuss their strategies for end-of-year financial planning. Whether you’re looking to improve your cash flow, save more or avoid debt, here are their tips to help you stay financially savvy.
Switch to monthly financial reports
If you’re still waiting until the end of each quarter to review your finances, it’s time to rethink that strategy. Running reports monthly helps you get a clearer picture of where your money is going – giving you more room for quick adjustments or rebudgeting. The small tweak can make a huge difference.
Secure deposits upfront
One of the biggest headaches for entrepreneurs is chasing down invoices. Several attendees talked about the importance of getting deposits upfront rather than relying on net 30 or net 60 terms (or, the amount of days they have to settle the account). Getting deposits upfront helps you avoid difficult clients who won’t want to pay, giving you more control over your cash flow and avoiding a ton of hassle.
Try something new: a pay-what-you-want model
Businesses put a lot of thought into how to price their products and services – we’ve hosted webinars all about pricing strategies. But that’s not the only option out there. Some attendees recommend a sliding-scale model, where clients can choose how much they want to pay for coaching or other services based on a set range. Clients tend to stick around, and payments are rarely missed – because they’ve made a choice they’re comfortable with
Build a buffer for slow periods
No matter how strong your year has been, every business faces ups and downs. You need a financial buffer to help carry you through slow seasons or unexpected setbacks. Don’t assume that just because money is coming in now, it always will be. (Think of how many new businesses were blindsided in March of 2020!) Set aside a portion of your revenue to stay prepared and avoid collecting debt.
The tools attendees use for financial management
- Memtime, for real-time, accurate activity tracking
- FreshBooks, for tracking both finances and time
- QuickBooks, for accounting
- PayPal, for managing transactions
- Wave, for budgeting and managing finances
- Airtable, for managing client accounts
- Physical ledgers, a classic method to tracking finances (no more platform depreciation, like Mint!)
A quick tip: if you’re thinking of switching platforms, make the change at the start of a new year, when it’s easier to implement new systems without disrupting your workflow.
Things for you to consider
As you reflect on your own end-of-year financial planning, here are some of the key questions we discussed during the networking session. Take a moment to think about how you would answer these questions for yourself:
- What’s one lesson you’ve learned this year about managing your business finances?
- What are your financial goals for the end of the year, and how are you tracking your progress?
- How do you balance investing in growth versus saving?
- What tools or systems do you use to manage your finances? Any recommendations?
- How do you prepare for slow periods with less business?
- What are your financial goals for 2025?
Join the next round of networking!
Lioness Networking is your monthly opportunity to expand your business network and connect with female entrepreneurs like you. Join us for enriching insights and camaraderie. Through a series of engaging breakout rooms and guided discussions, we’re here to provide valuable support for founders everywhere.
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