Income or Profit which do you track?

When we run a business, there is always so much to think about.  The last thing we might think about is tracking our income or profit. 

Tracking Income

Making a note of what you are earning on a weekly or monthly basis is a great way to know how much you have earned or what has come in as income.

Keeping track of your income, is another great way of being grateful for every penny you receive and celebrating the money we receive.  The more we appreciate what we earn the more positive energy we are giving out to the universe about our money.  This gives us more of an abundant mindset.

I have a great income tracker as a free download on my website. Just click on this link to download one.

So remember to track what you have earned, and then celebrate the receipt of every penny, but grateful for what you have received.

Covering your costs

So, you are making some money and celebrating every penny, but are you covering your costs? Is what you earn covering all your outgoings? 

To find out if they are or not, you need to total up all your business expenses.  These are the things that cost you to run your business. The things that if you didn’t pay you would not be able to run your business. 

Add them all up each month.  Now add your income up for the month, take away your expenses from your income?  Do you cover your costs?

Making a profit

If at the end of the day, you are not making enough to cover your costs, it gives you nothing to be able to pay yourself a wage or grow your business.

It also means you are not a profitable business. If you are not making a profit then what is the point? You are running a hobby not a business. 

It is easy to get distracted and only tracking your income, but being a good businessperson is more than tracking income, it is about getting the details right too. The more you know about your figures the more decisions you can make about your business.

Leave a Reply

Your email address will not be published.