Payment processing softwares – like Square or Stripe – are a very important tool for any small business owner who does business online. But they’re not telling you everything you need to know about your business finances. Check in with your business’s money system, and make sure you’re getting the full picture by looking beyond your payment processing reports.
Only Half the Story
Payment processing software is an incredibly useful tool. Your payment processing landing page might also be a place you visit often. Perhaps you check in once a week as part of your weekly money check-in. It’s fun to see the money roll in!
However, checking those numbers is not all you need to do. When you see the income your business is making as its reported by your payment processor, it’s important to remember that your profit and your personal paycheck are going to be different numbers altogether. Why is this? Because although your payment processor does a great job reporting your income, it shows you nothing about your expenses.
Get Clear on Your Expenses
Instead of stopping after looking at your income every week, the next step is to get clear on your expenses. I’d like to add that both your savings for taxes and your operating expenses are important to account for during this step, as they are both things you’ll want to put some of that income towards.
For more ideas about thinking more holistically about your money as a system and getting clear on how much money your business is really making, I’d recommend reading my series on money mapping. You can start here.
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