When you’re just starting a small business, hiring an accountant might feel like a luxury. But that doesn’t mean you can afford to ignore your finances.
The good news is: you can manage your business money yourself, as long as you stay organized, disciplined, and use the right tools. This guide will show you how to take control of your finances without stress—or spreadsheets that give you headaches.
Why Financial Control Is Crucial
Even if your business is small, managing your money well helps you:
- Understand if you’re really making a profit
- Avoid cash flow problems
- Plan for taxes and legal obligations
- Make better decisions for growth
- Stay motivated and focused
Financial clarity gives you peace of mind and power as a business owner.
Step 1: Separate Business and Personal Finances
This is the most important rule for any entrepreneur.
Why it matters:
Mixing business and personal money leads to confusion, mistakes, and possible legal issues.
How to do it:
- Open a separate bank account or digital wallet just for your business
- Use it exclusively for receiving payments and making business-related expenses
- Avoid transferring money between accounts unless you document it properly
Even if you’re a one-person business, act like a professional.
Step 2: Choose a Simple Method to Record Transactions
You don’t need complex accounting software. You just need a consistent system.
Options:
- Google Sheets or Excel: Easy and free.
- Free apps like Bookipi, Wave, or QuickBooks Self-Employed: Some even connect to your bank.
- Notebook or planner (old-school, but works!): Just be consistent.
Track the following:
- Income (who paid you, how much, and when)
- Expenses (what you paid for, why, and when)
- Profit (income minus expenses)
Update your records weekly to avoid falling behind.
Step 3: Categorize Your Expenses
Knowing where your money goes helps you spend smarter.
Create simple categories like:
- Marketing (ads, tools, design)
- Supplies and materials
- Subscriptions and software
- Shipping or logistics
- Internet, electricity (if used for work)
- Taxes and fees
This makes it easier to identify where you can cut costs—or where to invest more.
Step 4: Track Monthly Income and Profit
At the end of each month, do a basic summary:
- Total revenue
- Total expenses
- Net profit (revenue minus expenses)
Example:
- 💰 Revenue: R$ 4.500
- 💸 Expenses: R$ 2.200
- 📊 Profit: R$ 2.300
Write it down in a separate tab or notebook page for each month. This will help you see patterns and make decisions faster.
Step 5: Set Aside Money for Taxes
One of the biggest mistakes small entrepreneurs make is forgetting about taxes.
Here’s how to avoid surprises:
- Save a fixed percentage of every sale (e.g., 5–10% if you’re MEI in Brazil)
- Keep that money in a separate savings account
- Mark important tax dates on your calendar (like DAS and annual MEI statement)
Better to be prepared than caught off guard.
Step 6: Use Digital Tools to Make It Easier
Here are some free or low-cost tools that help you manage money without an accountant:
- Bookipi: Simple invoicing and expense tracking
- Wave: Free accounting software with reports
- Mobills: Great for mobile tracking (available in Portuguese)
- Google Sheets templates: Customizable and cloud-based
Use what you feel comfortable with—don’t complicate it.
Step 7: Review and Reflect Monthly
Take 30 minutes at the end of each month to review:
- How much you earned
- What you spent most on
- What worked and what didn’t
- Your financial goals for next month
This habit keeps you in control and helps avoid unpleasant surprises.
Tip: Treat your monthly review like a meeting with your business. Get a coffee, put your phone on silent, and take it seriously.
Step 8: Plan for Growth and Emergencies
As your business grows, your finances will get more complex. Be prepared.
Start creating:
- A basic emergency fund (1–2 months of business expenses)
- A savings plan for investments (like equipment, marketing, etc.)
- Goals for future income (e.g., R$ 5.000/month consistent revenue)
Financial planning isn’t just about surviving—it’s about building a business that thrives.