04/01/2024
The 1st of the month is always a whirlwind for me. It's when I fully embrace my role as CFO, closing out the finances from the previous month and planning for the one ahead.
My trusty Excel sheet is my saving grace in this process. Without it, I'd be lost in a sea of numbers. Here's how I tackle my monthly financial management:
1. Closing Out Previous Month: I start by reconciling my bank accounts with the previous month, ensuring everything lines up. While I don't track minor expenses like gas in the sheet, this step is crucial for accuracy.
2. Bill Management: Once the previous month is squared away, I meticulously review every bill due for the current month. From investor payments to property management fees, landscaping, and phone bills, I tally up the total payments required and assign due dates for each item. This allows me to construct a detailed daily cash flow analysis.
3. Rent Projection: I project the incoming rents for the month from my properties. This gives me a clear picture of what to expect financially. With most rents coming in by the 10th, I use this information to plan any necessary maintenance or improvement projects for the month.
4. Bill Payment and Cash Flow Analysis: With bills due on the 1st of the month, I tackle payments simultaneously with my cash flow analysis.
5. Daily Monitoring: Once everything is set, I check in with my Excel sheet daily to ensure I stay ahead of bills and update projected payments to actual.
What I appreciate about this method is its scalability. When I acquire a new building, I simply integrate it into the existing system, adding new sections for additional bills while the Excel sheet handles the rent.
I'm always open to new ideas and efficiencies in financial management. Do you have any suggestions or alternative methods? Thank you for attending my Ted Talk!
