Smart Financial Habits for Entrepreneurs: Helping You Stay Financially Strong All Year Round

“Strong financial habits can make all the difference between a thriving business and one that’s constantly playing catch-up. ”

Cashflow to your business is like a heartbeat to your health. Like the person who stops smoking in the ambulance after a heart attack, waiting until you have no cash to address your cashflow problem is often too late.

Being proactive with your business, means being a responsible steward of your cash. Having a healthy cashflow reduces stress, buffers your business against hard times, and allows you to invest in the things that will, yes, generate more cash.

One of the most important hats you wear as a business owner is the manager of the money. Whether you’re running a small business, private healthcare practice, law firm, or a consulting firm, strong financial habits can make all the difference between a thriving business and one that’s constantly playing catch-up.

Here’s how to stay on top of your finances—without feeling overwhelmed.

1. Schedule Monthly Financial Check-Ins

When was the last time you sat down and reviewed your finances? Too often, we focus on client care, customer service, or business growth while finances take a backseat.

Schedule it in.

Block time at the end of every month to review:

• Income and expenses

• Invoices that need to be sent or followed up on

• Any unexpected costs or cash flow issues

• Savings and tax reserves

2. Track and Forecast Profit (Not Just Revenue)

Many business owners track expenses but forget about forecasting profit. Your income isn’t always consistent, but having a realistic projection helps you to plan ahead.

Revenue is your top line, but you’ve spent money to earn it - so you can’t plan to spend the full amount. Instead, plan based on the profit you actually earn. It’s only by focusing on profit that you can truly manage your cash flow.

Try this:

• Look at your last 6 months of profit—are there patterns?

• Plan for seasonal fluctuations or gaps in income.

• Set revenue and profit goals based on data, not guesses.

Remember that revenue is not cash until it is CASH. In a service business, don’t spend revenue you don’t yet have.

3. Set Aside Money for Taxes Year-Round

If tax season caught you off guard this year, make the next one easier by setting up a dedicated tax savings account.

Pro tip:

• Set aside 20-30% of your income for taxes.

• Automate monthly transfers to a protected account so you’re never scrambling at tax time.

4. Pay Yourself—Even If It’s Just a Little

Many entrepreneurs reinvest everything back into their business, but you need to pay yourself consistently.

Start small:

• Set a minimum monthly “salary” and increase it as your profit grows.

• Treat yourself like an employee—you deserve a stable paycheck too!

5. Have an Emergency Plan for Unexpected Expenses

Life happens—a slow month, a postal strike, a surprise expense, or a major shift in your business.

Pro tip:

• Keep at least 3 months' worth of business expenses saved.

• Review your insurance and risk management strategies.

• Consider diversifying income streams so you’re not relying on one source.

Final Thought: Small Habits = Big Financial Stability

You don’t need to overhaul your entire financial system overnight. Small, consistent actions will strengthen your financial health and help your business thrive.

Want help building a better financial plan for your business? Let’s chat.