How to Manage Business Finances Like a Pro (Even If You Hate Numbers)

Let’s be honest—managing money isn’t exactly the most exciting part of running a business. If you’d rather focus on growing your brand, serving your clients, or creating new products, you’re not alone. Many entrepreneurs struggle with handling their business finances, and some even avoid it altogether.

But here’s the truth: if you don’t take control of your finances, they will control you. And that’s not what we want. So, even if numbers aren’t your thing, I’m going to break this down into simple, easy-to-follow steps that will help you manage your business finances like a pro. No complicated jargon, just practical tips you can start using today.

1. Separate Your Personal and Business Finances

One of the biggest mistakes new entrepreneurs make is mixing personal and business money. You grab lunch with a friend, and suddenly your business card is paying for it. Or, you make a sale and send the money straight to your personal account.

How to fix this: Open a business bank account. This makes it easier to track income and expenses, helps with taxes, and keeps you from accidentally spending business money on personal needs.

2. Create a Simple Budget (No Fancy Spreadsheets Needed)

Budgeting sounds boring, but think of it as a spending plan for your business. It’s not about restricting yourself—it’s about making sure you have enough money for what truly matters.

What to do: Write down your monthly income and expected expenses (like rent, software, marketing, salaries, etc.). Even a simple note on your phone or a Google Doc can work. The goal is to know where your money is going so you don’t wake up one day wondering why you’re broke.

3. Pay Yourself (Because You Deserve It!)

A lot of business owners pour everything back into the business and forget to pay themselves. While reinvesting is great, you also need to make sure you’re getting rewarded for your hard work.

How to do it: Set a fixed percentage of your profits as your “salary.” It doesn’t have to be a lot at first, but consistently paying yourself builds financial discipline and keeps you motivated.

4. Track Your Cash Flow (Know What’s Coming In and Going Out)

Cash flow is the lifeline of your business. If more money is going out than coming in, you have a problem. The key is keeping track of every dollar.

What helps: Use simple finance tools like Wave, QuickBooks, or even a free Excel sheet. Check your numbers weekly so there are no surprises at the end of the month.

5. Set Aside Money for Taxes (So You’re Not Shocked Later)

Nobody likes tax season, but avoiding it will only lead to bigger problems. Instead of scrambling at the last minute, prepare ahead of time.

Easy fix: Set aside a percentage of your income for taxes. A good rule of thumb is 20-30%, depending on your country’s tax laws. Also, consider working with an accountant or tax professional to avoid mistakes.

6. Reduce Unnecessary Expenses (Do an Expense Audit)

Every business has “silent expenses” eating up profits—things like unused software subscriptions, overpriced services, or unnecessary office supplies.

What to do: Every few months, review all your expenses and cut out what’s not adding value. This frees up money that can be used for growth.

7. Plan for the Future (Even If You’re Just Starting Out)

It’s easy to focus on today’s bills and forget about long-term planning. But businesses that survive and thrive are those that think ahead.

What to do: Start setting aside emergency funds for unexpected expenses. Also, think about future investments, whether it’s hiring a team, expanding your services, or upgrading equipment.

Final Thoughts: Take Small Steps to See Big Results

You don’t have to become a financial expert overnight. The key is to start with small, consistent steps. Managing your business finances is what allows you to scale, stay stress-free, and actually enjoy running your business.

If you need expert guidance on structuring your business finances, Mercy Elroi can help. Book a session with Iyabo Bello today and get tailored advice on making your money work for you.

Let’s build a financially strong and successful business—together! 🚀