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April is Financial Literacy Month—an opportunity to give special attention to your money management practices. Whether you’re a tech entrepreneur, a small business owner, or an independent contractor, “FinLit” is a crucial aspect to securing financial prosperity.
Lilit Davtyan is the Chief Financial Officer and Executive Vice President of Phonexa, and she’s no stranger to wealth management. A Certified Public Accountant with a Masters in Business Taxation, Lilit has dedicated years to mastering her craft, and has also spent her spare time sharing her financial literacy expertise teaching students in underserved communities.
We tapped into Lilit’s exhaustive experience to collect some words of wisdom for entrepreneurs and business leaders who are looking to hone their money management skills this month. Here are five of her top money tips.
Set Financial Goals
“It’s important to set ambitious, yet attainable financial goals, and break them down yearly and/or quarterly. These goals will help you determine whether you’re ahead or behind on your projections throughout the year.”
Properly Manage Your Accounting
“Make sure you’re keeping an accurate track of your invoices – and that they’re being paid on time! Paying close attention to your expenses & income can give you a helpful overview of where your money is coming from, where it’s going, when you can spend, and where you can cut, if needed.”
“Once it becomes too much to handle on your own, consider investing in a bookkeeper or online accounting software.”
Separate Your Business & Personal Bank Accounts
“Keeping your personal and business accounts separated will not only more accurately determine your business profitability, but it will also come in handy during tax season. You want to make sure you can easily differentiate your personal expenses from your business expenses, and there is no better way to do that than keeping them in entirely different accounts.”
Carefully Analyze Your Capital
“Before you decide to make an investment, bring on a new hire, or take out a loan, you’ll want to make certain you will have enough money to pay for it. Do not make the mistake of spending prematurely by factoring your projected income into your current cash flow.”
Consider Multiple Revenue Streams
“Creating multiple revenue streams can increase your cash flow and can also insure steady income. Think about any other ways you can possibly bring in revenue and take advantage of opportunities where you can create multiple revenue streams. Even when they’re smaller, they just might help when you need it most!”