How to Get Better at Managing the Financial Side of Your Business.

You can get better at managing your small-business finances by learning a few core money skills and reviewing your financial data regularly. Start with separating your personal and business accounts, keeping accurate bookkeeping, and learning how to read your P&L statement. From there, track your average monthly revenue and expenses so you know whether your business model is truly working. Business owners who engage with their numbers consistently make more confident, informed decisions.

Separating business and personal finances gives you clearer financial data and makes tax and bookkeeping far easier. When money is co-mingled, it becomes difficult to understand how your business is performing or whether you’re profitable. Proper separation also helps your accountant maintain accurate records and helps you make smarter decisions about spending, saving, and paying yourself.

Yes, every business owner needs to understand their profit and loss statement because it’s the core scorecard of your company’s financial performance. A P&L shows your revenue, expenses, and profit, helping you see whether your business model is sustainable. Once you understand how to read it, you’ll be able to identify trends, spot problems early, and make more strategic decisions about hiring, investing, and growth.

A business should start forecasting and budgeting as soon as it has recurring revenue or predictable expenses, but it becomes especially important once you’re approaching the $500K mark. A simple 12-month spreadsheet projection helps you plan for team costs, upcoming investments, and revenue goals. Forecasting isn’t just for CFOs, most online businesses can build effective financial models with basic spreadsheet skills.

If spreadsheets intimidate you, start with simple, consistent interactions like reviewing your P&L once a month or learning one new term at a time. Most small businesses don’t need complicated formulas; they need clarity around revenue, expenses, and profit. As you build confidence, you can expand into forecasting or more detailed financial tracking. Skill comes from repetition, not perfection.

Creatives can become more confident with money by reframing financial skills as part of running a healthy business, not a test of intelligence. Start with basic literacy: knowing what you make, what you spend, and what you keep. As you get more comfortable, you can build more advanced skills. Confidence grows when you stop avoiding your numbers and start engaging with them consistently.

The easiest first step is to set up clean, separate business accounts (checking, savings, and a business credit card). This instantly creates clearer financial boundaries and makes tracking far easier. From there, establish consistent bookkeeping (DIY or outsourced) and begin reviewing your monthly P&L so you always know where your money is going.