Monday Money Mindset: Save for Slow Seasons
Slow seasons are inevitable for most small businesses, and being unprepared can turn them into financial disasters. The solution? Build a cash reserve by saving a portion of each payment you receive. QuickBooks can help you automate this process by categorizing savings, so you can easily track your growing safety net.
Here’s how to start building your cash cushion:
- Decide on a Percentage: Save 5-10% of each payment.
- Automate Transfers: Use QuickBooks to set up automatic transfers to a dedicated savings account.
- Monitor Your Savings: Regularly check your reserve to stay on track and adjust as needed.
How to Automate Transfers in QuickBooks:
- In QuickBooks, go to Banking > Rules.
- Click Create Rule and set conditions for the transfers (e.g., deposit amounts).
- Set the action to Move to Savings Category.
- Save and let QuickBooks automate the process.
Having a cash cushion helps you stay confident during slow periods. If you’re unsure where to start, a Chandler CPA, like AZ Easy CPA, can help you design a savings strategy that works for your business.
Need help with your business finances? Contact Us! We offer monthly accounting and bookkeeping services, clean-up projects for past years, QuickBooks training, and phone consultations to help you stay on track.
