Do This Once A Month to Keep On Top Of Your Finances

This week is all about getting finances in check and making sure next year is a positive year

On Monday, Debbie gave us great tips on things we should consider when it comes to accounting and bookkeeping 🖊

Yesterday, I shared 3 key things we have done as a gym owner to maximise our profit..

Today though, it’s What’s Working Wednesday

And I’m sharing with you a key thing we do once a month to keep on top of our finances

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We all have to pay tax

And at some point, you may start paying VAT too

This is the bane of our lives!

We dread these bills…

The minute you hit that threshold

You either up your payments or take less of a profit

For us, we increased our prices a little 💸

We took a hit, and they took a hit

So today, we’re going to base our tip on a 20% tax bill and 20% VAT bill

Every single month, no matter the outgoings or sources of income

We look at the collective income and take off 20% and put it into a savings for VAT

We then take another 20% for the tax

Then, when the end of the financial year comes it’s ready and waiting

The good thing you know about this is, it’s never going to be that amount

Maybe your accountant has got it down

But if you save the exact amount you will have some leftover once you have paid that bill!

These are the two things I would suggest you do!

On the first of the month, make sure you transfer over into different savings accounts

So you don’t end up in trouble!!

Debbie goes into far far more detail on finances during our Guest Interview Episode on Monday

So, if you’re interested…go check it out!

David 🙂