Many small business owners fall into the trap of “reactive financial management.” To be entirely accurate, this is not a way of managing your finances at all. Instead, it is the practice of having money come into your business and then paying whatever bills come in first, or are most urgently requiring payment. The result of this practice is that you do not have a clear overview of what you are paying out, and what your money is being spent on.
Instead of being perpetually unaware of how much is being spent on what and when, use the expense tracking template and provide yourself with the knowledge to proactively manage your cash flow.