The goal of this project was to turn finances into analytics. This will make it possible to find edges in my business which can be grown.
Outcomes of this project:
- Automated credit card payments
- Hired someone to update my books and provide financial statements at the end of each month
- Structured withdrawal of finances each month
#1 Ongoing bookkeeping problems
#2 Finances aren’t up-to-date
#3 Don’t know key metrics
- Withdraw % of profit every month
- Create financial rules
- Cash flow statement is always up-to-date
- Identify KPI’s
- Prepare financial data to allow use of analytical skills
- Track LTV, CPA, Gross Profit %, Net Profit %, cash flow, budgeting % allocation, ad spend ROI
- Track revenue drivers: JV, interviewing clients
Analyze financial data.
Week 1 (Nov 1 – Nov 8)
- Called bank and got them to automatically pay my credit cards every month in full
- Nov 6, 2017 – Posted job for Quickbooks help
- Nov 8, 2017 – Hired someone to help with Quickbooks
Philosophy: Business is math.
Motivation: use audio structure
- Desired Results
Once my system is built out, if I want to stop doing it I can hire someone else to follow the exact process which I have set up.
The Circle + 80/20
- Experience: hiring help, accounting courses
- Software: Quickbooks
Outside the Circle
- Go through current finances in Quickbooks. Make a list of all questions and problems.
- Hire someone to answer questions in Quickbooks
For expenses, I don’t know what to choose for GST
For receipts, should I be attaching pictures of receipts for each? I am not keeping them now. What should I do?
How do I bring data in from stripe?
How do I match credit card payment from account?
Go through expenses.
Is there any downside to donating from business?