Why I track it
I have a tax background. I file taxes for a living, so I already know the back end of this. I've also watched people online post about getting a surprise tax bill, and I put two and two together. When I started my farm stand, I knew I had to track the money, because I work for a firm, and because I don't want the IRS breathing down my neck. Nobody wants that. So of course I knew I had to track it and report it. That's just what you should do.
When it got messy
Even with that background, when I first started tracking sales, it was a mess. Keeping receipts together was something I'd never actually done before. I'd catch myself using materials I'd already bought for the business and think, now I have to figure out how to split that. I was overcomplicating everything. So I slowed down, took a breath, and it got easier.
I also kept telling myself, I'll just put a little aside from this weekend, since it was farm stand money I could reinvest in the business. But as the economy got tougher, I noticed myself taking a little extra off the top for other things, which is honestly fine, but I was having trouble keeping my side hustle money separate from everything else, and accurately reporting it.
I'd forget to check the cash box and write down what I'd taken out. I'd tell myself I'd write it down later, then mom brain would kick in and I'd forget. My husband started finding cash in the washing machine, in random coat pockets. That's how bad mom brain got, but what can I say, I had a new baby, a full schedule at school, I was a mess. When I finally slowed down and sat myself down to build an actual system, it was just a simple spreadsheet.
What actually works
Realistically, keeping even a halfway decent track is just simple math. Money in, money out, profit. Then you set a little aside for taxes. As you go deeper, things like inventory come in, but that's the core of it, and it's what I want to share with other moms to help them do better.
Here's how it actually works. Every time you buy something for the business or get paid for something, jot it down right away, wherever is easiest. I use the notes app on my phone, and lately I've been using a physical planner I carry in my backpack, so I can jot things down at school too. Physical writing has been sooo great for my brain, I'm obsessed with my planner. That might be its own post someday.
Then pick a day, a Friday or a weekend, whatever works for you, and sit down to move everything into a spreadsheet. On a good weekend that part takes about ten minutes. Once a month, go through and do the whole month in more depth. That's one system. Everyone's will look a little different, and that's fine. It's really about finding your flow.
You don't need a perfect system, you just need one you'll actually use. Find your flow, and the rest gets easier. That's why I created the free Money Tracker, my more in-depth Money Basics for Moms guide. This star crossed love I have for content creation and taxes is feeding a bigger developing app that I'm hoping to bring to small creators to help make that side of your business seamless! Leave me your email address if you want to swing by again for some updates.
Thanks for stopping by. See you next time.
Courtney