I’m pretty good with numbers, but I’m not an accountant and when we first went into business ourselves, I found the process of setting up our finance system and managing our cash flow quite daunting. It can also be stressful not knowing where to start and if you’re on the right track.
We also just started our consulting business after the GFC, so trying to get the bank on board with what we were wanting to achieve was difficult, even though personally from a finance perspective, we were in a good position. This meant we really had to be on top of our cash flow, we had to have a lean business model and have stringent invoicing and payment processes in place.
This was a learning process for us as we funded our entire consulting business ourselves, without the comfort of a large bank loan. Because of this, we developed some good habits which we continue to maintain. It also forced us to focus on where we invested our money, what our plans were, and what cash we had to have available over the coming weeks, months and year.
What I found frustrating when we first started our business was that there weren’t many tools and templates available to help you manage your finances and your cash flow. Whilst this has changed and now there are many available for free from trustworthy sources like your bank, they are very general and not tailored for the consulting industry.
Over the years we have developed many finance related tools and templates to assist other consulting services businesses like us take control of their finances. What I have found is that once someone shows you how to set it up and how it should be used within a business similar to yours, then managing and revising your financials each month becomes so much simpler and less stressful!
If you would like to learn more about the templates and documents we use within our consulting business, please have a look at the contents list for our finance package. There is no point reinventing the wheel!