Keeping track of your business finances isn’t just about getting by—it’s what sets the stage for growth and success. Today, we’re breaking down one of the six core systems every business needs: a money management system. If you’re tired of stressing over where your money’s going and want to feel confident about your financial decisions, this episode is for you.

Did you know that nearly half of the small businesses started fail within their first five years? It’s not because the owners aren’t working hard enough—it’s usually because they don’t have a handle on their money. Managing your business finances can sometimes feel like you’re trying to put together a puzzle without all the pieces. If you’ve ever felt this way, you’re not alone. In fact, most, if not all, entrepreneurs struggle with this, which is why it’s one of the six core systems all of us need to get in place but often don’t.
The other day, I was chatting with a fellow entrepreneur over coffee, and she said something that stuck with me: "Shannon, sometimes I feel like I’m making money just to watch it disappear." She laughed it off, but I could tell there was a real frustration behind that statement. And I get it—because I’ve been there, too.
When I first started my business, I didn’t have a system to track my income and expenses. On top of that, my business and personal finances were completely commingled. Everything was flowing in and out of multiple personal accounts, and I had no clear picture of what money belonged to the business versus what was a personal expense. Let me tell you—it was a complete and utter mess.
I was constantly playing catch-up, trying to piece together where my money had gone. Tax time was a nightmare, and I’d find myself scrambling to pull together receipts and statements to figure out what I had paid out to keep the business running. The stress was overwhelming. I remember thinking, "I’m working really hard, but where is it all going?" It felt like I was running in circles and getting nowhere.
It wasn’t until I decided to sit down and create a money management system that things started to change. I started by getting a PayPal business account so I could invoice my clients and track that through reports. This also meant I had a place where the business income could be kept separate and used for the business. And because I had a business debit card, I could pay bills from that account instead of our personal accounts until I was ready to open a business account.
Suddenly, I could see exactly what my recurring expenses were in one place! And my clients were automatically billed each month! For the first time, I wasn’t just reacting—I was planning. This system gave me the clarity I needed to make smarter decisions. I could finally separate what was personal and what was business. It helped me set a clear budget, plan for growth, and even pay myself consistently. And let me tell you, once I had that in place, it was like a weight was lifted. I wasn’t just working harder—I was working smarter, making decisions with confidence, and even sleeping better at night.
Money is one of the hottest topics that can spark an argument in a home (I know this firsthand), especially when the money is running short. Many business owners struggle with this exact issue. But the good news is that it’s an absolutely fixable issue.
Today, I’m going to share how you can set up a simple money management system to take control of your business finances. This isn’t about spreadsheets that make your head spin or complicated and expensive software—it’s about creating clarity in your business, building confidence in your numbers, and knowing exactly where your money is going. And before we’re done today, I’ll tell you how we can work together to get this system set up so you can stop worrying about it and start focusing on what you love.
Here’s the thing: you can’t make smart business decisions if you don’t know your numbers. Whether it’s investing in a new tool, hiring help, or even planning a vacation, it all comes back to understanding where your money is going.
Let me share an example of a client who came to me during her first year in business. She was a talented caterer who made over $70,000 that year. On paper, everything looked great. But when she checked her bank account at the end of the year, there was barely anything left. She was frustrated and confused, and she couldn’t figure out where all the money had gone.
Here’s what we uncovered: she wasn’t tracking her expenses or keeping tabs on her cash flow. She had no idea what her profit margins were, especially when it came to costs tied to each event—ingredients, supplies, or labor. She also had employees helping with events but didn’t have a system to track their hours. Without knowing her labor costs, she couldn’t accurately calculate how much she was spending to fulfill her contracts. And because her pricing wasn’t based on her actual costs, she was losing money on some of her gigs without even realizing it.
The first thing we had to do was set up a basic money management system. She started tracking her recurring expenses on a spreadsheet, then we started tracking one-time costs, and event-specific costs like ingredients and rentals. We also implemented a simple electronic check-in system for her employees to track their attendance and labor hours. This allowed her to see exactly how much she was spending on staffing for each event.
With these systems in place, she finally had a full picture of all the pieces of her business finances. She could see where her money was going, adjust her pricing to reflect her true costs, and make more intentional decisions. For example, she realized that certain events required more staffing than she originally thought, which was eating into her profits. By knowing her numbers, she was able to set better prices and negotiate with clients more confidently, and her business continued to grow.
This example shows why it’s so important to create systems for your finances. Without them, even the hardest-working business owner can struggle to turn a profit.
Let’s talk about where you can start. Money going out—also known as accounts payable—generally falls into three categories:
Recurring monthly expenses: These are things like subscriptions for tools you use in your business, email marketing platforms, or scheduling software.
Annual recurring expenses: Think of professional memberships, website hosting, or tools billed yearly.
One-time expenses: This might include attending conferences, purchasing equipment, or investing in professional development.
You can start by creating a spreadsheet with all of these items. List the expense name, amount, due date, and payment method. This gives you a clear picture of where your money is going, and it’s a lifesaver if you need to update payment information, like when you get a new credit card.
And don’t forget to track your receipts. I know, it’s not glamorous, but it’s essential. You can set up a digital filing system to make this easier. If you’re not sure where to start, go check out my episode ‘Transform Frustrating Chaos with a Game-Changing Filing System.’ I walk you through the exact steps to create a system that works for you. Trust me, this will save you so much time and stress, especially come tax season.
Once you’ve tackled expenses and receipts, it’s time to monitor your cash flow—also known as accounts receivable—the money coming in. This isn’t just about knowing how much you made last month—it’s about spotting patterns. Maybe you notice that most of your income comes in during certain months, and others are slower. With that insight, you can plan ahead and avoid scrambling when things get tight.
Whether you send invoices or rely on auto-billing (which I highly recommend), you need to track those payments as they come in. If you work with clients on a recurring basis, having a process for handling declined or late payments is essential as well. And you should have clauses in your service agreements that clearly identify what happens when you aren’t paid on time. Templates for reminders or follow-ups can save you time and ensure you get paid on schedule.
For my clients and members of the MY-T Society membership, we start with a simple business expense spreadsheet, which is one of the resources included in the membership. It’s designed to help you identify and track all of your monthly and one-time expenses at a glance. But that’s just the beginning. The MY-T Society membership also gives you access to tools, templates, and workflows to help you manage not just your finances, but your entire back office with ease.
Let me emphasize this: having your numbers in front of you is empowering. It allows you to identify gaps, spot opportunities to save, and plan for growth. For creatives, like my catering client, knowing the cost of materials, labor, and even your time is essential for pricing your products and services in a way that reflects your true value and leaves you with a decent profit margin.
But I also know that when it comes to money, fear can creep in. You might be worried that you’re not making enough to support your family. Or maybe you’re afraid of taking risks because you don’t feel confident about your finances. Some of you might feel overwhelmed simply because you’ve never been great with numbers. These fears are valid, but they don’t have to hold you back.
Imagine this instead: What if you didn’t have to figure it out on your own? What if you had a partner to help you create a system that worked for you and made managing your finances simple and stress-free? That’s exactly what we’ll do together during a B.O.O.S.T. Day.
During a B.O.O.S.T. Day, we’ll set up your money management system by creating processes for tracking your expenses and income. I’ll even help you implement tools to handle things like labor costs or payment reminders. By the end of the day, you’ll have a plan for managing your money and a system in place to take the guesswork out of your finances. No more worrying, no more procrastinating—it’s done. This will make tax time so much easier for you!
Let’s recap what we’ve covered today.

A money management system is essential for running a sustainable business. Whether you’re tracking costs to price your products or managing recurring expenses, having a clear picture of your finances puts you in control. If you’re ready to get started, the MY-T Society membership includes a business expense spreadsheet that can help you hit the ground running. And if you want hands-on support, book a B.O.O.S.T. Day with me—we’ll set everything up together so you can move forward with clarity and confidence.
DM me on Instagram @the_shannonbaker if you have questions about anything we’ve discussed today or go to theshannonbaker.com/membership to learn more about joining the membership.
And now that’s we’ve talked about tracking and managing your money, meet me back here next week to talk about the two components every business needs to make money, a sales and marketing system.