Karina Shevchenko

The money flow in gyms is usually intense: memberships, drop-in visits, personal training sessions, space rentals, sports nutrition sales — dozens of transactions every day.
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Now add trainer salaries, equipment costs, utilities, taxes, and repairs — and you’ve got a financial whirlpool where it’s easy to lose control.

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That’s exactly the kind of reality Smartass, a Kharkiv-based gym serving hundreds of clients daily, was operating in. But behind the scenes of this dynamic business, chaos was running the show:‍

‍There were gaps between the reports and reality. Cash was tracked separately. And that didn’t work for me at all — because I had zero visibility into the cash flow.
— Maksym, owner of Smartass Kharkiv

While the financial chaos was draining time and energy, the business couldn’t grow strategically. But everything changed when Maksym decided to systematize financial management, connected Finmap, and — together with a financial director — brought order to the numbers.

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In this article, you’ll learn:

• how a gym owner went from reporting chaos to complete financial transparency;
• how automation helped plan dividends and staff bonuses;
• which insights reshaped the financial approach — and what’s next for the business.

Keep reading — and you’ll see how a real-life case proves: finance can be simple, and running a business can be calm and predictable.

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Why Manual Financial Tracking Was Holding Smartass Back

Every day, Smartass generated dozens of financial transactions — but the owner only saw fragments of the full picture. Cash operated on its own terms: administrators reported inconsistently, sometimes with delays, sometimes with mistakes. Maksym received scattered numbers, tried to reconcile them manually, and often found discrepancies between reports and reality.

‍Some things were accounted for, some were duplicated, some weren’t tracked at all. Cash was calculated separately.
— Maksym, owner of Smartass Kharkiv

To find out how much cash was in the register, Maksym had to message administrators, wait for their replies, and manually calculate everything on a calculator. Instead of a clear system — endless clarifications and manual math. It consumed time, created constant stress, and made it impossible to plan the business’s growth.

‍I had to calculate everything manually once a week or month, trying to figure it all out somehow. It was extremely inconvenient. Especially considering we already had a tool for this — and just weren’t using it.
— Maksym, owner of Smartass Kharkiv

As a result, he couldn’t forecast dividends or plan major expenses in advance. The business was operating reactively — responding to situations instead of proactively managing them.

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Common Financial Challenges the Business Faced

What Triggered the Implementation of Finmap

Maksym admits that he had been unhappy with the financial situation for a long time — he just didn’t know who could fix it. The team was busy with their own tasks, and he didn’t have time to dive into the numbers himself. So the chaos dragged on for months — until the opportunity finally came to change everything.‍

‍When you offered to help fix it, I realized that in just a few months, we could turn it all around.
— Maksym, owner of Smartass Kharkiv

The key turning point was realizing that there was no need to search for someone responsible within the team or try to implement a system alone. There was a ready-to-use tool — and people who took over the process. This allowed the business to keep running while implementing changes in parallel, without placing extra burden on the owner or the team.

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The first step was introducing a structured approach to cash tracking. Now all transactions — from received payments to cash deposits — are recorded in the system automatically, instead of being manually collected through messages from administrators.

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Next, the team set up regular weekly reporting calls. Once a week, Maksym gets a complete overview: what’s been done, what’s in progress, and which payments are scheduled. This eliminated the need for him to check numbers daily or micromanage the staff.

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Finmap began to be used to its full potential — not just for viewing balances, but also for forecasting expenses and income. Maksym received access rights to independently analyze the data and make changes when needed.

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Another important improvement was the proper distribution of large expenses. Now, when the club purchases expensive equipment or plans technical maintenance, those costs are spread out over several months. This helps avoid sudden financial “dips” in reporting and allows for more accurate planning of cash gaps.

‍We started allocating expenses properly. Now we can plan technical maintenance for the whole year — instead of taking a hit in one specific month.
— Maksym, owner of Smartass Kharkiv

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Triggers that Prompted Action

From Manual Calculations to a Structured System

Today, financial management at Smartass runs like a well-oiled machine. Maksym no longer spends evenings doing calculations or messaging administrators to find out how much cash is left at the front desk. All the information is in the system and updates in real time.

‍Now everything’s finally in order when it comes to managing cash. I see everything clearly in the system.
— Maksym, owner of Smartass Kharkiv

The process has become easy and predictable. Once a week, there’s a call to discuss what’s been done, which payments have been made, and what’s still planned. After that, the owner can calmly focus on growing the business — without worrying about daily control.

‍It’s really convenient for me because once a week we go over everything that needs to be discussed. I don’t have to remind anyone about anything.
— Maksym, owner of Smartass Kharkiv

Another major shift is the ability to forecast. Now Maksym can plan dividends, staff bonuses, salary increases, and large expenses in advance. The club stopped operating “after the fact” and started looking several months ahead.

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In addition, the owner became more engaged in the financials: he analyzes statistics, reviews performance metrics, and adjusts data himself. This helps him make informed decisions — and feel in control of the business.

How Finmap Transformed the Club’s Financial Processes

Insights for Entrepreneurs

Maksym’s experience revealed several key lessons that can benefit any business owner.

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First, he realized that the biggest problem isn’t the lack of money — it’s the lack of understanding where the money is going. When data is incomplete or chaotic, every decision becomes guesswork instead of a controlled process.

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Secondly, he became convinced that automation relieves the lion’s share of operational burden. Now, instead of constant clarifications and manual calculations, the team follows a clear process — and Maksym receives all the summary information in a convenient format.

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Thirdly, he saw that financial management isn’t a luxury for large companies — it’s a basic necessity for any business with daily operations. Forecasting brings confidence and allows for strategic decisions, rather than constant firefighting.

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“The most valuable result is that I see the result,” — says Maksym, emphasizing that the true value of financial management lies in witnessing real changes, not just pretending to have control.

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What Financial Order Brings to Your Business

Business Planning and Scaling

For Maksym, implementing financial management was not the end point, but just a starting platform. Now that all the basic processes are in place, he is moving to the next stage — deep financial planning.

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What lies ahead is creating detailed budgets several months in advance, to forecast expenses and income, identify potential cash gaps, and avoid unpleasant surprises.

Now I can forecast the bonus system, pay rates, and salary increases with more confidence.
— Maksym, owner of Smartass Kharkiv

The club plans to optimize its bonus programs for staff, making them fairer and more transparent. This will not only help retain top trainers but also motivate the entire team to deliver results.

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Future plans also include scenario analysis: what happens if rent or equipment costs increase, how the situation changes with more clients. This will enable the business to be managed not just at the moment but with a clear long-term strategy.

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Action Plan for Further Business Growth

The implementation of systematic financial management became a true turning point for Smartass.

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The business no longer lives from one report to the next — it plans, forecasts, and looks confidently into the future.

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Maksym got rid of chaos, manual calculations, and endless clarifications within the team. Instead, he now has a transparent system that shows the real state of affairs, tells him when and how much can be spent or taken as dividends, and enables him to run the business — not just react to it.

Yes, of course I can recommend Finmap!
— Maksym, owner of Smartass Kharkiv

This case proves: financial management is not unnecessary bureaucracy, but the key to growth and business stability. It gives the owner a chance to free their mind from small details, focus on development, and finally feel in control of their business.

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If you recognized your own business in this story — it’s time to bring order to your finances. The sooner you see the full picture, the faster you’ll be able to make decisions that lead to profit and scaling.

Frequently Asked Questions

1. How do I know if my business needs financial management?
If you can’t see the full picture of your cash flow, reports don’t match reality, and you have to count the cash manually — it’s already a signal that it’s time to systematize your finances.

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2. How long does it take to implement financial management like in Smartass?
In Maksym’s case, the first results appeared within a few weeks, and full reporting order was established in a few months.‍

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3. Does the business owner have to manage Finmap personally?
No, the owner gets a transparent system and access rights to see the big picture. Routine tasks are handled by a financial manager or administrators.‍

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4. What if the business has a lot of cash transactions?
These businesses benefit the most: cash is automatically tracked in the system, and there’s no need to message employees or do manual calculations daily.‍

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5. Does financial management help with planning and forecasting?
Yes, that’s one of its main benefits. At Smartass, they now forecast expenses, plan dividends, and even structure the team’s bonus system months in advance.

Cash gaps, delayed payments to cosmetics distributors, not enough money to pay stylists, chaotic use of cash from the register — this isn’t the exception, it’s the daily reality for many salons where financial management isn’t a priority.

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There’s no point in finding comfort in the fact that “everyone’s like that.” Successful salons prove the opposite: when finances are managed properly, profit, growth, and peace of mind appear.

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Together with leading beauty industry experts Alina Tymoshenko and Nataliia Honcharenko, we identified three of the most common problems — and their solutions will help you regain control over money, avoid typical mistakes, and finally see your real profit.

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Read to the end if you want to:

• see the full financial picture of your salon;
• anticipate cash gaps instead of constantly plugging them;
• delegate financial management without losing control;
• and start scaling — from a place of order.

Problem #1: You Don’t Know How Much Money Your Business Actually Has

As a business owner, can you answer this: how much money does your salon have at its disposal right now?

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If instead of a clear number you start scrambling — checking banking apps, counting the cash in the register, messaging your team, trying to remember what was supposed to go through the POS — then this issue is already deeply rooted in your business processes.

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The reason is simple: your money is scattered. Some is on business accounts in different banks, some on personal cards, some in the cash register, and some in the hands of your stylists.

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How mixing personal and business money destroys your financial system.

This kind of setup leads to an even bigger problem: mixing personal and business finances.

The first — and most painful — mistake is mixing personal and business money. When one cash register is used to buy everything from studio supplies to groceries, or the day’s earnings are instantly spent on personal needs. As a result, by the end of the month, there’s no way to see a real picture of your income and expenses. — Alina Tymoshenko, mentor and author of educational programs for beauty entrepreneurs

Without a clear financial system, the owner uses any available account — whether it’s the company account or a personal card. It may feel flexible, but in reality, this approach undermines control and stability.

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What this leads to:

• You can’t accurately assess the profitability of the business — injecting personal funds masks real losses.
• The business becomes dependent on the owner's personal finances — instead of evaluating financial efficiency.
• Expense tracking becomes messy — personal purchases can be misclassified in reports, skewing analytics and complicating tax reporting.
• You can’t build a financial cushion or plan investments — because there’s no clearly separated company cash flow.
• It increases financial anxiety and burnout — you don’t feel stable, even when revenue is coming in.

How to Bring All Your Finances into One System

To run your business based on numbers, you need to start with the basics — a complete list of all the accounts your salon uses. Without this, any kind of financial tracking is guesswork, not reality.

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That’s why the first step to financial management in Finmap is to create a clear account structure and get the full picture: how much money you have, where it is, and what part of it is actually available for business use.

Separate business accounts are not a formality — they reshape your mindset as an owner.

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Make it a rule: separate your personal and business accounts — and use them accordingly. For example, dedicate one bank or card for personal spending only, and another exclusively for business operations. Don’t mix them. Even if it’s “just convenient to transfer quickly from your personal one.”

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This simple habit:

• creates a clear boundary between your life and your salon’s finances;
• reveals the true profitability of your business — without distortions;
• reduces stress by stopping you from constantly covering business costs out of your own pocket;
• enables data-based financial analysis, not intuition-based decisions.

Without clear separation between personal and business accounts, there is no real financial control — only the illusion of it. Finmap helps turn chaos into a manageable system from day one.

Problem #2: Unpredictable Cash Flow

You might be tracking daily revenue and have a rough idea of your expenses. But if you’re not planning and forecasting your cash flow ahead of time, you’re heading straight into a cash gap.

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The core issue is this: income is always uneven, while expenses are constant. Without a structured financial system, the money you need simply might not be there when it’s time to pay.

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What it means in practice:

• You have no clear idea how much money will be available in a week or two.
• Salary and rent payments are at risk, because decisions are made without analysis.
• Purchases happen randomly, without accounting for high and low activity periods.

Salon owners often overspend on inventory — ordering too many supplies in advance or buying things that aren’t critically necessary, without analyzing stock levels. These expenses add up and eat into the profits. — Alina Tymoshenko, mentor and creator of educational programs for beauty entrepreneurs

Cash Flow Is More Than Turnover — It’s the Key to Seasonality

Yes, beauty businesses also experience seasonality. For some, it’s a spring peak. For others — autumn. For many — the holiday rush in December. But if you don’t track and analyze your income and expenses over time, you simply won’t see the pattern.

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In Finmap, it’s visible from the very first chart in the Money report — the monthly business dynamics help you quickly identify which months are the busiest.

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This allows you to:

• Plan your team’s schedule in advance.
• Purchase supplies ahead of time.
• Balance workload and prioritize tasks for your team.
• Forecast potential cash gaps and avoid last-minute emergencies.
• Build a system of promotions or gift certificates to boost revenue during low seasons.

A plan isn’t just a formality — it’s confidence. It’s the confidence that at the most critical moment, you have everything under control — not running out of hair dye or supplies during the busiest booking season.

A Financial Safety Cushion Is the Foundation of a Stable Business

Another key benefit of tracking your cash flow is the ability to build a reserve fund.

‍The most common issue? A lack of financial safety cushion. Many studios operate month to month, and even after years in business, they remain vulnerable: any unexpected expense (equipment breakdown, sudden rent hike, or force majeure) can throw everything off track. — Alina Tymoshenko, mentor and author of educational programs for beauty entrepreneurs

When you clearly see cash surpluses in certain periods, you can intentionally set some of that money aside. Because the difference between running a business with a financial cushion and without one is massive:

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Money Management: How Finmap Helps You Control Your Cash Flow

So, after gathering all your accounts into a single system, the next step toward financial order is managing your cash flow — tracking the actual movement of money both daily and in a projected mode.

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How to do this in Finmap:

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1. Sync your accounts: transactions will be automatically pulled in from integrated banks, or you can import them or enter them manually if you work with cash.
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2. Tag categories for each transaction or create auto-rules so expenses and income are automatically assigned to the right line items.
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3. Add all planned payments and expected income — rent, salaries, subscriptions, gift certificates, etc.
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4. Use the payment calendar to see exactly when money is needed and whether you’ll have enough to cover expenses.
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5. Review your cash flow reports weekly — analyze actual balances, seasonality, and business dynamics to make timely decisions.

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Finmap turns chaotic money flows into a clear system. Now you can see what’s coming — and act ahead of time. This isn’t just reacting to financial issues; it’s systematic business management.

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But even if you spot seasonality and plan your finances — that’s still not a guarantee of order. Because as long as all decisions, payments, and records are on your shoulders — you are the system.

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And a system that depends on one person is always vulnerable.

Problem #3: You’re Not Delegating the Tasks That Drain Your Energy

Expectation: you have your dream business, successful and running on its own.

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Reality: you’re its main engine, its core process, and the only guarantee of order.

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Beauty salons are often born from talent and vision. From the desire to create something beautiful, something special. But as soon as clients, a team, and expenses appear — that dream turns into responsibility.

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The owner quickly shifts from a creative role into:

• the lead stylist (because no one else does it better),
• the receptionist (because someone canceled, and the schedule still needs to be filled),
• the marketer (because reels need to be posted daily),
• the buyer (because supplies need to be found, ordered, and received),
• the decorator and logistics manager (because that new shelf has to be bought and installed),
• the HR manager (because it’s up to you to choose who joins your team),
• and even the cleaner (because you can’t walk past a messy workspace without fixing it).

It’s not the finances that cause problems — it’s ignoring them.

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Finances don’t call, don’t message you on Viber, and don’t wait at your door with complaints. So among your daily tasks, they’re always postponed. First, the client, the post, the order, the schedule, the team... And the finances stay in your head, in scattered notes, in empty spreadsheets.

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But that’s exactly how chaos begins. That “later” turns into a cash gap, missed salaries, and uncertainty about tomorrow.

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A business doesn’t grow from intuition. It grows from structure. And the first step toward growth is freeing up your time and attention. Start with what matters most — delegating financial management.

How to Delegate Financial Management in Finmap

In Finmap, you can delegate parts of your financial processes to others without losing control. There’s a Users section where you can add everyone involved and set flexible access rights — from full access to limited roles (such as access to a single account or permission to enter data without seeing analytics).

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An outsourced CFO will help you set up effective financial management and make informed business decisions

And if you don’t yet have a financial specialist on your team — use Finmap AI Copilot. It will generate a clear report, highlight weak points, suggest what to do next, and even warn you about risks you might not notice on your own.

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Remember: financial management isn’t just another task — it’s the foundation of a stable business. To grow, you need to delegate, and Finmap gives you the ability to offload part of the routine without losing control.

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Because your role isn’t to carry everything yourself — it’s to manage a system that works for you.

How to Avoid Financial Mistakes in a Beauty Salon: Advice from Nataliia Honcharenko

Nataliia Goncharenko is a bestselling author for beauty entrepreneurs and founder of The Concepts Beauty Business School. She firmly believes that financial management is not just an Excel spreadsheet — it’s a full-fledged business culture.

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Without knowledge, discipline, and the right focus, even a profitable salon can end up just breaking even.

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We asked Nataliia to share key tips that will help you take control of your finances.

1. Start with discipline

Debt, cash gaps, lack of funds for salaries — these aren’t the root causes of problems, but their symptoms. The real issue is that the salon lacks even basic financial management. And deeper than that — it’s the lack of discipline.

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In the beauty industry, it’s often entrepreneurial discipline that’s missing. When an owner regularly takes money from the cash register for personal needs, it’s not a mistake — it’s a conscious decision. They choose a cash gap over stability, delayed salaries over team loyalty, and debt over growth.

Discipline is not a talent or education. It’s a personal choice you have to make every day if you want your business to survive and grow. — Nataliia Honcharenko, founder of the international business school The Concepts Beauty Business School

2. Separate the payroll fund as its own category

One of the biggest mistakes in salon financial planning is ignoring the payroll fund (PF) as a separate expense. If you pay your team a fixed percentage of revenue, the PF grows along with your income. And if the percentage is flexible — increased revenue doesn’t guarantee profit at all.

The payroll fund shouldn’t scale directly with revenue. It’s a strategic expense category that needs separate control. — Nataliia Honcharenko, founder of the international business school The Concepts Beauty Business School

Start treating the payroll fund as an independent expense category. This will allow you to realistically assess the profitability of your services, manage profits, and see where the money is going.

3. Focus on marginal profit first

Average ticket size is a metric that doesn’t give a full picture of your salon’s financial health. What does give a true picture is marginal profit — the amount left after subtracting variable costs from each service or product. This is what covers your fixed costs and generates profit.
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Why marginal profit matters:

• You can see how much money each service or product actually contributes to covering the salon’s expenses;
• You get data to manage variable costs;
• You can apply dynamic pricing and build well-balanced promotional offers;
• You stop setting prices blindly and start factoring in profitability and market realities;
• You can answer the key question: what must the service be like so we can sell it at this price?

‍Please don’t include a made-up portion of fixed costs in your variable cost calculations. And don’t multiply consumables by 2–3–5 — that’s a myth that’s spread across the industry. If you want to learn how to calculate things correctly — consult professionals, not social media advice. — Nataliia Honcharenko, founder of the international business school The Concepts Beauty Business School

Financial stability in a salon starts with simple steps.
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You don’t need to become an accounting pro overnight — it’s enough to take responsibility and be open to learning. Because it’s the systematic approach to money that separates the salon that just survives from the one that grows and becomes truly profitable.

Money under control — business grows

If you recognized your own problems in this article — that’s already the first step toward change. Next comes systematizing your finances, organizing cash flow, and finally seeing your actual profit.

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Because having the best stylists, a line of clients, and a stylish interior — that all matters. But it’s accurate financial management that gives a salon stability, profit, and confidence in the future.

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Finmap is your control system that:

• unites all accounts, cash registers, and expenses in one place;
• shows how much profit each service and specialist brings;
• warns you about cash gaps — before they happen;
• helps form a payroll fund and plan out payments;
• reveals where the money is disappearing — and what to do about it;
• lets you delegate accounting while keeping full control in your hands.

If you want your salon not just to function — but to generate profit — start with financial management.
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Try Finmap and bring beauty to your finances!

Frequently Asked Questions:

1. Why do I need financial management if everything in the salon seems stable right now?
Because “stable” is not the same as “profitable.” Without systematic management, you don’t see where money is leaking, which service is truly profitable, or whether you’ll have enough for next month’s payroll.

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2. How can I tell which services or specialists generate profit, and which ones only create expenses?
You should track each area separately: record income and expenses for each service or specialist individually. This will help you see what’s working efficiently and what needs adjustment or optimization.

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3. What happens if I still mix personal and business money?
You won’t be able to accurately assess the profitability of your business. Personal spending, cash withdrawals, and impulsive purchases distort the picture. Separate accounts and clear division help you see how much the salon actually earns and where the money goes.

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4. Who should manage the salon’s finances? Does it have to be a financial specialist?
Not necessarily. At first, you can manage it yourself or delegate to an administrator, financial assistant, or accountant. The main thing is a clear system, consistency, and understandable rules for everyone involved in the process.

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5. What if I don’t want administrators or specialists to see all financial information?
That’s totally fine. You should configure access rights so that each person sees and handles only what’s within their responsibility — for example, recording petty cash expenses or working only with their own account. This allows you to delegate some tasks while keeping control in your hands.

You’re selling every day: website, Instagram, marketplaces. Money is coming in — but every day you’re asking yourself the same question: “How much is my business actually earning?”

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Sales are growing, turnover is increasing, yet finances remain unstable despite this growth. One day there’s not enough money for advertising, the next — not enough for inventory. Instead of a clear financial picture, there's chaos and confusion. Is your business actually making money or just staying afloat?

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In retail and e-commerce, mistakes are costly.

You offer a discount but forget to factor in logistics — and you’re operating at a loss.
You launch an ad campaign but overlook expenses — and your profit vanishes.

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Without a clear financial picture, decisions become guesses. And guesswork means a risk of bankruptcy.

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Common Financial Problems in Retail and E-commerce

You’re constantly making dozens of decisions: how much to invest in advertising, when to pay suppliers, which product to order. But without a clear financial system, these decisions are almost always made blindly.

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Here are 5 common problems that hold businesses back from scaling:

1. No Unified Financial System

Multiple business accounts, acquiring, marketplaces, cash on delivery, cash — your financial data is scattered across various dashboards and spreadsheets.

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If this data isn’t consolidated in one system, you have no real picture of how much money you actually have, what income is expected, what’s already spent, and what should still come in.

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Consequences:

• Every time you check your balances, it feels like a full audit, draining your time and nerves. Instead of managing the business, you’re searching through Excel files and online banking accounts.
• Your financial manager or accountant lacks up-to-date information. This can easily lead to exceeding turnover limits, additional taxes, or refunding clients.
• Calculation errors cause cash gaps, late payments, missed purchases — or funds get blocked on an account and can’t be used when needed.

The owner shouldn’t be spending time manually aggregating data — they should see the full financial picture in two clicks. That’s the foundation of effective management.

2. It’s Unclear What Actually Generates Profit

Most e-commerce and retail companies only know their revenue figures. But which product is actually profitable, which channel brings margin, and which one just burns resources — is usually not tracked.

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According to a PwC Strategy report:

Around 50% of products in a typical sales portfolio generate less than 5% of gross margin.

Consequences:

• You’re selling a product that seems profitable or popular but is actually killing your profitability.
• Scaling becomes hard — you don’t know which products are worth promoting.
• Advertising budgets go to campaigns that don’t deliver meaningful returns.

It doesn’t matter how much you sell. What matters is how much you earn from each item. Your decisions should be driven by the margin on products and channels.

3. Cash Gaps Due to Disorganized Settlements

In your business, you deal with dozens of contractors every day: suppliers, logistics companies, managers, freelancers. Each has their own payment terms: prepayments, partial payments, advances, 7/14/30-day delays.

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But without a systematic approach to tracking these settlements, you lose control: you don’t know who still owes you money and who you should have paid yesterday.

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Consequences:

• Cash gaps appear: you seem to have money in the account, but it can disappear the moment an angry supplier calls.
• You incur penalties, shipments get blocked, clients are lost.
• You have to “put out fires” with your own money — covering payments from your personal funds or on credit.

Financial relationships with partners must be under control. Every payment should be planned and transparent — otherwise, it’s not a business but a chain of chaotic reactions.

4. No Financial Planning

In most e-commerce businesses, money comes in only after the order is fulfilled.

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But most expenses are regular and often require prepayment: you need to buy inventory in advance, launch ads, pay advances, cover delivery costs, handle returns, and so on.

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Consequences:

• If you don’t plan when and how much money is coming in — sooner or later you’ll face a situation where there’s not enough cash on hand or in the account.
• Payments are made using credit or loan limits, which leads to extra costs.
• Profit becomes unpredictable — you’re never sure until the end of the month whether you’ll break even or not.

According to JPMorgan Chase, over 60% of businesses don’t even have a basic monthly cash flow model. How long do you think those businesses can survive?

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Without financial planning, you’re not managing money — you’re constantly fighting the consequences of not having it.

5. Money Frozen in Inventory

One of the most common financial mistakes in retail and e-commerce is buying inventory without a financial rationale. Decisions are often made emotionally: “It’s a good price,” “It’ll sell in season,” “It doesn’t spoil — let it sit.”

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But every batch of inventory is frozen money. And if you don’t know whether you can sell this volume, at what margin, and whether the profit will cover ads, shipping, packaging — it’s not an investment, it’s dead weight.

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Consequences:

• Without calculating full cost and margin, you can easily stock up on products that look profitable, but after shipping, packaging, and fees — you’re basically giving them away for free.
• You can’t pay for what’s truly necessary — because your money is frozen in inventory.
• You can’t grow sales because you don’t know which products actually make money.

Every purchase should be guided by analysis: can we sell it, how much will we earn, and is this better than spending the money on ads or growth?

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‍These aren’t all the financial problems e-commerce and retail businesses face. But these are the most dangerous ones.

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They eat into profits, block growth, and create ongoing instability.

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If left unresolved, scaling won’t bring growth — only more chaos.

Why Having a CRM Doesn’t Mean You’re in Control of Your Finances

Many entrepreneurs mistakenly believe that if they already use a CRM, their finances are under control. Yes, a CRM is important — but it’s designed for managing sales, not money.

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A CRM helps you sell — and that’s its core purpose. It:

• Tracks leads and customer inquiries;
• Shows sales stages and funnel progress;
• Helps manage your sales team;
• Calculates conversion rates, average check size, and KPI performance.

But it doesn’t answer the key financial question: is the business profitable?

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A CRM doesn’t track real expenses — for advertising, delivery, packaging, salaries. It doesn’t know when marketplace payouts are due or when you need to pay a supplier.

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It won’t show how much money you have, how much is blocked, how much you owe, or how much is needed to cover all obligations.

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CRM is about who bought. Financial management is about what you earned.

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And if you want to manage your money — not just record sales — you need a dedicated tool.

Finmap — Real-Time Financial Management

Finmap is an online tool for financial management that gives you a complete view of your finances.

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Finmap gathers everything in one place, automates routine tasks, and shows you where the profit is — and where the expenses are.
This is not “accounting for the tax office” — it’s a tool for making managerial decisions.

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For retail and e-commerce, this is critical: Cash flow is unstable, expenses are scattered, and data is stored in dozens of different sources.

No More Chaos: All Your Money — Under Control in One Dashboard

Finmap brings all your financial sources into one system: bank accounts, acquiring platforms, marketplace data, cash on delivery, and physical cash — everything in one place.

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It also offers an open API, letting you connect your CRM or other tools so the system captures not just payments but also sales data automatically.

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Result: At any moment, you see exactly how much money you have, where it came from, and where it's going.
This isn’t just convenient — it’s profit control.

Automate Your Finances — Manage the Business, Not Spreadsheets

Finmap helps you automate financial processes in just a few simple steps — without extra routines or constant manual control:

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Result: All your data updates automatically. No errors. No delays. You finally free up time for strategic decisions, growing your business, and increasing profits — instead of chasing numbers.

“Projects” Report — See Profitability by Business Line

Want to know what actually brings profit: Sales from Amazon or Instagram? Wholesale or retail? B2B or dropshipping?

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Finmap lets you break your business into separate “projects” — by sales channels, business lines, product lines, brands, or marketplaces.

And then see income, expenses, and profit by each one.

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‍Result: You make decisions based on margin and profitability. You scale what works — and cut what drags you down.

Payment Calendar — Your Financial Planner

Tired of putting out fires?

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With Finmap, you see all upcoming income and expenses day by day — and can spot potential cash gaps before they happen.

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‍Result: You plan cash flow ahead of time, meet your payment obligations on schedule, avoid shortfalls, and manage your business proactively — not in panic mode.

Inventory in Money Terms — See Profit, Not Just Stock

You bought the goods but haven’t sold them yet. The money’s already gone — but the profit hasn’t come in.

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Create a separate “Warehouse” account in Finmap, where you’ll track inventory movements in money terms, not just item counts.

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Result: You see exactly how much you earn from the products you’ve sold.
You don’t confuse spending with assets — especially critical for businesses with large inventory balances.

Control Payables and Receivables — Avoid Cash Gaps and Losses

Many businesses lose money not because of low sales, but because they don’t get paid on time — or fail to track their own obligations.

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Finmap lets you track every debt: who owes you, how much, and when it’s due.

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And vice versa — who you owe, payment dates, what’s already paid, and what’s still outstanding.

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‍Result: All your receivables and payables are under control. No more forgotten payments, lost clients, or damaged reputation. You can forecast cash gaps, manage working capital, and know exactly what you can count on.

A Flexible Tool for All Your Needs

Beyond core features, Finmap easily adapts to the way your business works. You can:

• Track salaries and bonuses paid to your team
• Delegate routine tasks to employees using flexible access rights
• Analyze profitability by client, marketplace, or ad campaign
• Monitor how much each team member earns and spends
• Send invoices and track client payments

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Result: You don’t just get accounting — you get a financial system tailored to your business. From day-to-day operations to strategic analytics — everything that affects your profits is under control in one workspace.

Finmap Client Case: From Financial Chaos to Strategic Management

Klebrig is a hypermarket of chemical products that repackages and sells chemical goods. They operate their own production of products for household and food industry use and deal with a large product catalog, regular procurement, and constant logistics costs.

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Before implementing Finmap, their financial management was limited to Excel sheets. The accountant handled taxes, but the owner didn’t trust the overall financial picture.

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It was only after the founder, Andriy, stepped out of daily operations and started tracking money himself that he discovered serious gaps: cash flow problems, no control over operating and working capital expenses, and inaccurate P&L analysis.

‍There were days when the money simply wasn’t there — but I knew it was supposed to come in. Managing money and actually seeing the big picture are two different things. — Andriy Femyak, founder of Klebrig

At first, they used Finmap just to track money and centralize all financial sources in one system.

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But once Andriy explored it further, he realized that Finmap is a comprehensive financial management tool showing the full picture: income, expenses, working capital, and liabilities.

Initially, Finmap was just a payment tracker. But over time, it became an analytical system — helping us assess profitability, plan investments, and avoid financial mistakes. — Andriy Femyak, founder of Klebrig

The company built its financial system around three core components:

• P&L reporting — to assess profitability monthly and identify unprofitable areas
• Cash flow forecasting — to plan working capital and see when actual funds would be available
• Expense control — to structure costs across operations, procurement, and growth

As a result, financial decisions in the company are no longer made at random.

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Financial decisions are no longer based on guesswork. The business sees not just what has happened — but what’s coming next: When the money will arrive, whether it’s enough for raw materials, and if there’s a reserve for investments.

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That allowed Klebrig not only to stabilize finances — but to shift toward strategic financial management.

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A word of advice from Andriy to other entrepreneurs:

‍Before you invest in anything, clearly separate what counts as operational expenses and what counts as working capital. Calculate full cost — including logistics, packaging, and fees. Without that, no investment will bring you profit.

Finmap: Financial Control for Retail and E-commerce

This isn’t just a convenient tool — it’s a mission-critical foundation for your business’s stability, growth, and profitability. Finmap:

• Brings together all income and expense sources into one system
• Automates financial management
• Shows profitability by product, sales channel, and business direction
• Helps forecast cash gaps
• Tracks business and product seasonality
• Controls receivables and payables
• Gives you the complete financial picture for confident decision-making

Finmap is your foundation for real profits and scalable growth.

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With Finmap, you don’t have to guess where your money is — you know.

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Launch your financial system today — and start earning, not just selling.

Get Finmap for free!

Try 7 days of financial clarity

No card required

Frequently Asked Questions about Financial Management in Retail and E-commerce

1. We already have a CRM. Why do we need Finmap too?
A CRM manages orders — not your money. It doesn’t account for actual expenses, show cash gaps, or provide P&L reports.
Finmap answers the core question: Is your business profitable, not just selling?

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2. We use Excel for everything. Isn’t that also financial management?
Not really. Excel means manual work, constant errors, and outdated info.
Finmap automates it all, syncs with your banks, and gives you real-time financial visibility — not “after-the-fact” reconciliations.

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3. We’re a small business. Do we really need a system like this?
Small businesses often suffer the most from cash gaps and poor spending decisions.
Finmap isn’t about company size — it’s about control. Start small so you can grow with confidence.

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4. We’re already profitable. Why add another system?
Profit without transparency is luck, not strategy.
Without control over cash flow, margins, and obligations, you can’t scale safely.
Even profitable businesses can burn out from one cash gap if they’re not planning ahead.

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5. Can Finmap show which products and channels are profitable?
Absolutely. You’ll see profitability by product, channel, or marketplace — so you can double down on what works and cut what drains resources.

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6. I’m not a finance expert. Will I even understand it?
Finmap isn’t made for accountants — it’s made for business owners.
Clean dashboards, clear reports, no jargon.
Your financial picture is just a few clicks away — so you can make smart decisions without getting buried in spreadsheets.

You work tirelessly, your team gives 100%, revenue flows in, yet by the end of the month, there’s barely any profit left. If this sounds familiar, you probably suspect that the issue isn’t low sales but rather a lack of clear financial visibility. This is where financial accounting comes to the rescue.

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It’s not just numbers in Excel or reports for tax authorities. It’s a financial analytics system that reveals where your business is losing money and how you can preserve and multiply it.

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Why Financial Management Matters More Than a Business Owner’s Intuition

Let’s look at a real case involving one of our clients — entrepreneur Yevhen, who successfully transformed his business and doubled his profit. He owns a law firm operating in multiple areas but, for confidentiality reasons, has requested not to disclose its name.

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Like many business owners, Yevhen saw the overall profitability of his company but lacked a clear understanding of the financial performance of each individual segment. This became a critical issue when he considered scaling and expanding into new markets.

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A thorough analysis uncovered an unexpected reality: out of five business areas, only two were profitable, one was breaking even, and two were operating at a loss. This raised an important question: how could he adjust his current strategies to reduce losses and improve business efficiency?

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The solution was drastic:

• Eliminate the break-even segment and redirect the team’s resources toward developing profitable services, enhancing their effectiveness.
• Shut down one unprofitable segment since it showed no growth potential.
• Retain the second unprofitable segment because it played a strategic role in attracting clients to profitable services. However, to stop it from generating losses, Yevhen had to optimize expenses and rethink operational processes.

The results were immediate: after the reorganization, only three segments remained, yet the company’s profit doubled the very next month. And all this — without hiring more staff, making additional investments, or acquiring new clients.

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This story once again proves that without financial management, it’s difficult to identify a business’s weak points. Accurate financial data enables informed decision-making rather than relying on intuition, which can gradually lead a company to bankruptcy.

Key Elements of Effective Financial Management

For financial management to truly help increase profits, it’s not enough to simply collect data — you must also interpret it correctly. A clear financial structure allows you to quickly identify problem areas, make well-informed decisions, and grow your business without unnecessary financial risks.

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What are the foundations of effective financial management? Let’s break down the essential elements that make it work.

1. Unified Data System

Settlement and card accounts, cash in any currency, even cryptocurrency — all financial flows should be consolidated into a single system. This ensures that records reflect not only legal entities but also real cash flows and company wallets.

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As a business owner, you shouldn’t have to guess how much money is in the business — you need to see it clearly and instantly. How much cash is available right now? What is the actual profit? Where is the money going? These answers should be accessible in one click — without chaotic bank statements and endless spreadsheets.

2. Standardized Data

Without a unified system for collecting and analyzing financial data, there’s always a risk of losing control over finances, which can lead to inefficient resource management.

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What does data standardization include?

• Clearly defined responsibilities. Each team member should understand their role in financial management and be accountable for their segment.
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• Strict reporting deadlines. Timely data collection and reporting are not just good habits — they are the foundation for making informed and timely decisions.
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• Structured income and expenses. Without clear categorization, it’s nearly impossible to assess the company’s true financial standing.
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• Defined business segments and projects. If revenue-generating areas aren’t distinguished, measuring their profitability becomes impossible.
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• Consistent profit and cost calculation rules. Without clear criteria for cost allocation, depreciation, and other expenses, financial reports become vague and unreliable.

3. Clear and User-Friendly Analytics

To make effective management decisions, a business needs a clear financial picture spanning several months or even years.

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It’s crucial to present this data in a convenient format — charts, dashboards, and visual summaries all on one screen, rather than scattered across chaotic, manually compiled spreadsheets.

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This approach eliminates time wasted on endless number crunching and allows leaders to focus on strategic decisions that drive business growth. Without such a system, a business is essentially operating blindly.

4. Segmented Profit Calculation

Profit shouldn’t be calculated only at the company-wide level—it must be broken down by projects, business lines, product groups, and sales channels. Additionally, tracking margin and profitability for each segment is essential.

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Only a segmented approach enables entrepreneurs to clearly understand why profits are declining and what needs to be adjusted to reverse the trend. Without detailed insights, businesses risk overlooking critical shifts in specific areas and expenses that could significantly impact overall results.

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5. Calculated Break-Even Point

How much do you need to sell — daily, monthly — to reach break-even? Where is the fine line between profit and loss, and how many sales are required for your business to become self-sustaining?

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These figures must be precisely calculated. Continuously monitoring them allows for timely strategy adjustments and swift responses to market changes.

6. A Fixed Income and Expense Plan

Imagine this scenario: tomorrow, you need to pay a contractor, but your account balance is just enough to buy some cookies for tea. In a week, you’ll receive a large payment, but in the meantime, the contractor bombards you with frustrated messages and threats to terminate the partnership.

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This doesn’t mean your business is unprofitable — it’s a classic cash flow gap, where incoming and outgoing funds are out of sync, leading to a temporary shortage for covering operational expenses.

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Why endure unnecessary stress and waste time on apologies?

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To avoid these situations and prevent every payment from becoming a crisis, you need a reliable tool — a Payment Calendar.

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This will be your trusted ally in managing cash flow and planning expenses to avoid financial pitfalls. You can track all income and expenses in a simple Excel spreadsheet or use an automated solution. This way, you’ll not only know how much money is coming in and when but also plan your spending regardless of circumstances.

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Business isn’t just about taking risks — it’s also about anticipating them.‍

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In essence, financial management is a navigator that helps design and optimize long-term business strategies, set realistic goals, achieve them, and build a stable, profitable company.

Simplify the Process with Finmap

A simple online financial management tool like Finmap can make this process effortless and transparent.

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With Finmap, you can:

• See all your business finances on one screen.
• Generate automated financial reports in just two clicks.
• Plan income and expenses effectively.
• Delegate routine financial tasks to employees.
• Maximize your business profits.

Start building a successful future for your company today!

Is it possible to scale successfully while keeping all records in notebooks and homemade spreadsheets? “Definitely not!” confidently answers Oleksandra Kulykova, founder and CEO of Kukuruza Video Production.

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Scaling a business without process automation is like building without a foundation. This renowned video production studio proved it with their own example, implementing innovative solutions that not only save time but also optimize team operations.

How Kukuruza Video Production Combines Creativity and Efficiency in Their Work

Kukuruza Video Production is a Ukrainian company that creates animated content and videos for customers from all over the world. The company's clients include both big brands and local businesses. For example, they have worked with such well-known companies as Porsche, Lenovo, NEOLUX, Rozetka, and others.

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In 2022, the team faced new challenges: large amounts of information required an integrated approach. Data on potential customers, active projects, budgets, milestones - all this needed to be structured for effective management.

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This solution was implemented by the Ukrainian integrator CRMiUM, which combined all workflows into a single, unique ERP system. The process of customer acquisition and order fulfilment is now tracked holistically in the CRM, Notion and Finmap applications.

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A logical question arises: if you already have CRM and project management, what is the need to use Finmap?

Integrations as an Effective Automation Tool

One of the key changes was the introduction of banking integrations, which allowed us to synchronise all payment systems in one programme. This has significantly reduced the time required to enter transactions manually, as now any movement of funds, especially receipts from customers, are immediately reflected in Finmap.

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This information is automatically transferred to the CRM system, and from there to Notion, signalling to managers that they are ready to launch new projects.

One of my rules for sustainable development is to have the courage to experiment, take risks, and try new approaches. Don't be afraid to go beyond the standards. — Oleksandra Kulykova, CEO of Kukuruza Video Production

In her work, Oleksandra strives for innovation, while in finance she takes a pragmatic approach. Even when it comes to risky financial decisions, Finmap tools, such as the Payment Calendar forecast, help her understand how justified such a decision will be.

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Delegation and Flexible Access: The Key to Process Optimisation

American motivational psychologist Brian Tracy notes in his book Delegation and Management:

If someone can do a task 70% as well as you can, delegate it to that person. Free yourself up to tackle the tasks that only you can do.

This advice is relevant for all areas of business, and is especially important for financial accounting. After all, business owners often spend too much time and energy on routine payment processing.

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Oleksandra and her team avoided this problem by using a flexible access system for each of their employees.

We created an account for each manager and gave them access only to the projects they are involved in. This is very convenient, because employees do not have access to fundamental information and focus only on the workflow for which they are responsible. — Oleksandra Kulykova, CEO of Kukuruza Video Production

‍This approach allows you to:

• Protect confidential information.
• Quickly analyse accountable funds.
• Monitor the status of accounts in real time.
  

Even contractors have access to only the necessary part of the data to set up a CRM system, without diving into financial information.

How the Projects Report Helps to Quickly Analyse Profitability

Each payment, whether it is automatically integrated through banking systems or added manually by the manager, is immediately recorded in the Projects report.

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Thanks to the automatic calculation of project profitability, the company is able to analyse all orders in real time.

How does this help the business?

1. Transparency to customers.
   The company can reasonably explain how additional services or concessions affect the final profitability. This ensures trust and transparency in customer relations.
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2. Promptness of decisions.
   The team sees the financial status of each project in real time, which helps to make strategic decisions faster.
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3. Management of additional services.
   Changes that are not included in the contract are instantly reflected in the report, allowing you to respond and adjust your work in time.
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Kukuruza Video Production's experience proves that each area of activity requires specialised tools that automate and simplify processes. Whether it's off-the-shelf ERP systems or customised solutions, it's up to you. But without a clear financial structure, success is impossible.

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Choose Finmap as your reliable partner and focus your resources on developing and scaling your business. Technologies work for you — use them to their fullest potential!

Proper financial management is a tool to not only make business transparent and efficient in the long term, but also to save resources. Why it is necessary to improve financial management even in a profitable company, read in this article.

LIBERT Is a Leader in Premium Transportation

LIBERT - company specializes in individual premium and business class transportation, offering a wide range of services to its customers. Their portfolio includes transportation of official delegations, mass transport events, as well as international transportation.

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The key advantage of LIBERT is the highest level of service, with attention to every detail and maximum consideration of the client's wishes. Key aspects that ensure a solid reputation include:‍

• ‍An individual approach to the route, taking into account all the client's requirements.‍
• Armored cars for maximum security.‍
• Speed and efficiency of transportation organization.‍
• High level of service and availability of English-speaking drivers.‍
• Full support of the trip with the organization of the necessary reservations and security.
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The LIBERT company achieved success thanks to the scrupulous and responsible approach of its owner. Andriy Antonenko is attentive not only to customer service, but also to the organization of internal processes. A special emphasis on financial management helps the company to effectively manage finances, control costs and grow confidently.

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Spreadsheets vs. Business: Why Manual Accounting Doesn't Work Anymore

Andriy started his business in 2008. He refused to conduct affairs blindly, without a clear understanding of how much money was spent and what payments were made.

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For digitalization of business, the company used self-made spreadsheets all these years.‍

I studied financial literacy on my own. Order isimportant to me, especially in finance, so I immediately trained my subordinates to a clear reporting system. — Andriy Antonenko, owner of LIBERT

When financial management was kept on a monthly basis, the functionality of the tables seemed to be sufficient. But when at the end of the year more than twelve tables had to be compiled and a report issued, the time and nerves spent only burdened the owner. Over time, the tables multiplied, and although they provided a lot of information, it seemed impossible to qualitatively analyse and systematize them.

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The next challenge was that at some point the control of the reports and the validation of all the formulas changed for the daily business of the owner.

If in the evening you do not check everything against the tables and do not additionally list all the results, or you miss a mistake somewhere, then tomorrow it will be impossible to untangle this tangle of data! — Andriy Antonenko, owner of LIBERT

Such checks took not only time, but also the resources of the owner himself, who should have dealt with more global issues.

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Successful organization of financial management became impossible due to a number of reasons:

• Attempts to implement a CRM system did not give the desired results, because they did not cover even half of the company's business requests.
• Working in tables took too much time and didn't allow to quickly obtain complete information.
• The operations manager had a high workload, and reworked the norm of working hours.

How Finmap Changed the Approach to LIBERT Company Financial Management

Andriy learned about the Finmap service from a financial specialist who was putting his contractor's financial management in order. The financier organized the data using Finmap, and the speed of generating reports was impressive.

I decided to try Finmap as well. The system issimple and everything is clear. And the online meeting with the support consultant made it possible to customize the service exactly to my business format. — Andriy Antonenko, owner of LIBERT

Monitoring the Operation of Cars

In Finmap, it is convenient to track the results of the operation of the machines that Andrii started as projects. The system shows how much was spent on servicing each car and how much money was earned.

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You can analyse revenue by car class and determine the most profitable or least profitable cars. In the service, it is possible to detail data also by type of services and even by individual clients.

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Control of receivables

In the LIBERT business model, the main indicator is not the amount of funds received from the client, but the number of services provided. Payments are usually made after the fact, at the end of the month, and accounting for all services and related expenses must be online.

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The manager enters the issued invoices into the service in the form of Accounts Receivable, indicating the period when transport services were provided and the date when they are expected to be settled.

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The owner only has to open the Debtor report in Finmap and check:

• Who has already paid
• Who has delayed payment and needs additional reminders
• What new invoices were issued

The Profit report helps to analyse this information from a different angle. After all, even in the first graph, the amount and the term for which the funds have not been paid are immediately visible.

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Such easy and at the same time detailed control of Receivables became possible only in Finmap, as self-made tables required constant expansion, modification and reconciliation of formulas.

How Finmap Replaced an Additional Operations Manager and Saved the Owner More Than $8,000 Per Year

Before the introduction of the service, the manager was engaged in cost accounting and entered them manually into the table. At the same time, when the drivers made expenses, they immediately wrote about it in the work chat, which was constantly filled with more and more new messages. 

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It was quite easy to lose important information in such a flow.

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The communication process regarding accountable funds was long and confusing:

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Such a process was carried out with each driver, of whom there were about 20 at that time. The workload was increasing, and the owner had already started the search for an additional operations manager.

How Finmap Optimized the Process of Working With Management Money

For convenience, drivers have been added as Users. For each of them, a separate account was created and access was granted only to it. These accounts show the funds available to the driver.

1. ‍Drivers independently pay expenses, attach checks, specify details and choose a project.
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2. ‍Drivers independently add cash transactions to their accounts, with the corresponding settlement of the client.

Now the owner sees in real time:‍

• ‍how much money was spent;‍
• what needs were the funds used for;‍
• balance on the driver's balance;
• whether the settlement was in cash;
• whether expenses did not go beyond the budget.

So, Andriy can now quickly compensate the driver for the spent funds, decide whether additional finances are needed, and does not waste time on clarifying the payment.

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Such an innovation reduced the workload of the manager several times, and the need for additional personnel disappeared.

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 And now a little math (as of 09/20/2024):

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1. As the website Work.UA notes, the average salary of an operations manager in Ukraine is $750.
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2. So, in one year, Andriy had to pay $8 780.
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3. An annual subscription to Finmap costs $432.

Savings: 8 780 - 432 = 8 348

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With the help of Finmap, drivers were also able to monitor the balance on their account at the fuel company, which allowed:

• To the owner —control the fuel consumption of each driver.
• To the drivers —promptly provide information on fuel limits.
• To the manager —manage general and individual fuel limits.

Finally, honest and transparent relationships are being built with my entire team, which is one of the keys to success for me. It is important that everything is enough for everyone, then the work of the drivers will be comfortable and the level of our service will only grow. — Andriy Antonenko, owner of LIBERT

Prospects for Further Cooperation Between Finmap and LIBERT

Easy implementation and use, coverage of most of the company's cases and optimization of business processes became the basis for strong and long-term cooperation with Finmap for Andrii.

I didn't even know if there were any similar programs or competitors to Finmap. And why, if this system completely satisfies me? It would be good for our business to be able not only to issue invoices in Finmap, but also to provide certificates of completed works. So we hope that we will wait for such innovations as well. — Andriy Antonenko, owner of LIBERT

Now, the reports generated automatically in the service provide the owner with comprehensive information about the state of his business. Finally, financial management became not a burden, but a convenient tool for the strategic and tactical development of the company.

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Introduce Finmap and learn all the details of the financial status of your business. Optimize, save and grow with Finmap!

Are you familiar with the feeling of fear that comes with the arrival of payday tomorrow, and there are only a few hundred hryvnias left in your bank account? Do you panic when important suppliers demand payment, and you don't have enough funds?

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Every entrepreneur has faced such situations in the course of their activities. Why does a lack of funds occur at crucial, sometimes decisive moments, and how can this be prevented?

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This dreadful scenario is called a cash gap — a situation where there is not enough money to cover the current obligations of the business.

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Such a problem threatens bankruptcy and debts. Cash gaps can lead to unpleasant consequences beyond the company: decreased sales, damage to the company's reputation, conflicts with suppliers, tension within the team, staff changes, penalties from suppliers and banks, and production delays.

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This article aims to help entrepreneurs permanently eliminate cash gaps. We will consider five key tips that will help ensure your business's financial stability, avoid stress related to a lack of funds, and create a solid foundation for sustainable growth.

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By following these recommendations, you will be able to effectively plan cash flows, control expenses, optimize accounts payable, create financial reserves, and increase revenues.

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Being proactive is the most effective way to combat cash gaps.

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Where to start in combating cash gaps?

1. Plan Cash Flows

The Importance of Planning

Regular cash flow planning is critical for anticipating and preventing potential cash gaps. According to data from Minutes.co:

82% of small businesses fail due to cash flow problems.

Forecasting

‍Make forecasts of income and expenses for future periods. This helps you better understand when cash gaps may occur and prepare for them in advance. According to a study by JP Morgan Chase:

The average small business has only 27 days of cash reserves.

2. Control Expenses

Expense Analysis

‍Regular analysis of expenses helps identify areas where savings can be made. Evaluate if expensive supplies can be replaced with cheaper alternatives without losing quality. For example, using more economical materials or optimizing production processes can significantly reduce costs.

Prioritization

Prioritize expenses that directly impact your income. Investing in raw materials, research and development, marketing, and staff training can directly increase sales and improve product quality. Reduce spending on less critical aspects of the business, such as unnecessary administrative fees.

Implement Flexible Budgets

According to Harvard Business Review:

Companies that adopt a flexible budgeting approach in constantly changing business environments are more likely to avoid financial difficulties.

Use of Technology

‍Modern technologies can help track and optimize expenses. Use financial management software that automates processes and provides accurate expense reports. According to McKinsey:

Implementing digital solutions can reduce costs by up to 30%.

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3. Optimize Accounts Payable

Payment Terms

Negotiate longer payment terms with suppliers, if possible. This approach allows more funds to remain in your accounts to cover current expenses. Regularly review your cooperation terms with suppliers and look for better options.

Process Automation

‍Use financial software to automate the management of accounts payable. This helps avoid errors and ensures timely payments.

Setting Priorities

Prioritize debt repayment based on its importance to your business. Pay off those debts first that could cause the most significant problems if payments are delayed.

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Tracking Debt

Regularly monitor the status of accounts payable. This helps avoid unexpected expenses and allows you to respond promptly to potential issues. Consider using analytical tools to forecast future financial needs and plan payments.

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Experienced entrepreneurs use a payment calendar for this purpose. It acts like a "vaccine against cash gaps."

What is a payment calendar?

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A payment calendar is a tool for financial planning of cash flows in a business. It is usually created for a month with weekly breakdowns or for a longer period suitable for your business.

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It outlines expected income and expenses for a specific period, allowing the business owner to assess the company's ability to meet financial obligations on time.

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A payment calendar can be maintained in homemade Excel spreadsheets, which is quite inconvenient and time-consuming. An alternative option is automated financial programs.

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The convenience lies in the fact that all pre-scheduled payments are automatically included in the calendar, and it is possible to immediately see potential future cash gaps.

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There is no need to manually enter all account balances, income, and expenses every month. Thanks to integration with banks, all data is automatically pulled in.

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Working with the Finmap Calendar is done in just a few clicks:

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1. Enter all planned expenses into the service: rent, salaries, taxes, etc.
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2. Enter planned income: payments from clients, repayment of accounts receivable, etc.

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A short video will help you understand the useful functions of the payment Calendar.

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Now, in the payment calendar, you can clearly see during which periods you might experience a cash gap and preempt it by rescheduling or canceling payments, negotiating with clients for earlier payments, etc. This visibility allows proactive management of your cash flow to avoid financial strain.

4. Use Financial Reserves

Creating Reserves

‍Establish a reserve fund to cover unexpected expenses. This helps prevent cash gaps during sudden financial difficulties. Financial experts recommend having reserves sufficient to cover expenses for three to six months.

Investments

Consider investing a portion of your profits in liquid assets that can be quickly converted to cash if needed.

Diversification of Reserves

‍Spread your reserve funds across different accounts and assets to reduce risks. For example, keep some funds in savings accounts, some in bonds, and some in other liquid investments.

Regular Review of Reserves

Regularly review and update your financial reserves to ensure they meet your business's current needs. This helps you be prepared for any financial challenges and avoid cash gaps.

5. Increase Revenues

Marketing Strategies

Implement effective marketing strategies to attract new customers and increase sales. Utilize SEO, social media, and other channels to enhance brand visibility.

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Investing in quality content marketing can significantly boost website traffic. Additionally, retargeting ads can reclaim up to 26% of visitors who have previously visited your site, increasing conversion chances.

Diversification

Consider diversifying your product or service offerings to reduce risks associated with dependence on a single income source.

Partner Programs

Implement partner programs to acquire new customers through existing partners. This can expand your market significantly without substantial marketing costs. According to Forrester:

Companies using partner programs can generate up to 15% of their total revenue through these channels.

Customer Loyalty

Invest in loyalty programs to retain existing customers. Bain & Company reports that:

Increasing customer retention by 5% can lead to revenue growth of 25-95%.

Consider implementing discounts, bonuses, and special offers for loyal customers to encourage repeat purchases.

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Avoiding cash gaps is a key aspect for sustainable business development.

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Implementing these five strategies will help ensure financial stability and mitigate the stress associated with cash shortages.

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Plan cash flows, control expenses, optimize accounts payable, create financial reserves, and increase revenues.

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By utilizing these strategies, you can minimize financial risks and ensure the prosperity of your business, while Finmap simplifies the process with its user-friendly payment calendar.

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In addition to the payment calendar, Finmap allows you to:

• Monitor income and expenses through bank integrations.
• Aggregate data and operations across various projects, categories, contractors, and counterparties.
• Easily analyze finances and profits through intuitive graphs rather than complex reports.

Forget about the nerve-wracking tension caused by financial management. Discover what organization and transparency in business finances really mean!

Have you ever wondered where the money goes when it seems like your business is booming? Do you ever get lost in the numbers and can't figure out where the profit is?

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A lack of clear financial control can lead to a loss of funds and growth opportunities. That's why a profit and loss statement (P&L) is an indispensable tool for every entrepreneur. It helps you see hidden problems and find ways to solve them, ensuring the sustainable development of your business.

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Why is a profit and loss statement necessary for business?

Assessment of financial performance

A profit and loss statement allows you to assess the financial performance of your company in detail. You can see whether you have achieved your financial goals by comparing income and expenses.

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For example, a restaurant owner can use this report to determine which dishes bring the most profit and which ones should be removed from the menu.

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According to a study by the U.S. Bureau of Labor Statistics:

About 20 percent of small businesses close within the first year, 30 percent within two years, and 50 percent within five years, largely due to a lack of financial control.

Budgeting and strategic planning

With a regular profit and loss statement, you can plan your budget more effectively and develop development strategies.

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For example, a company may find that it spends too much on marketing and redirect these funds to innovation or staff training.

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According to a study by CB Insights:

One of the main reasons startups fail is a lack of proper financial planning and management, accounting for up to 39% of all failures.

Monitoring and controlling expenses

The income statement helps to identify excessive costs and find ways to optimise them. It provides an opportunity to respond to cost increases in a timely manner and take measures to reduce them, which helps maintain the company's financial stability.

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Thanks to cost analysis, Dmytro Sheremeta, owner of Chistota cleaning company, saved $12 500 a year.

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Dmytro's company has always strived to provide high-quality cleaning services, using the necessary equipment, such as vacuum cleaners and ladders, which had to be delivered to the place of service. The cost of this delivery was usually included in the total price of the service. To transport the equipment, the company often used taxis, which resulted in unpredictable logistics costs depending on weather conditions, days of the week, and current taxi demand.

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After analysing the costs using the profit and loss statement in Finmap, Dmitriy discovered that the company's logistics costs were higher than expected. Together with his team, he started looking for ways to reduce these costs. After careful analysis, it was decided to change the type of delivery and find a partner who transports goods using electric scooters.

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This approach not only reduced delivery times, but also eliminated the dependence on fuel prices, making the cost of transportation more stable.

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Before the cost optimisation, one round trip delivery cost the company $9, while after the implementation of the new logistics strategy, the cost dropped to $2.5. This has significantly reduced logistics costs and increased the company's efficiency.

Reporting to stakeholders

Investors and lenders pay attention to the income statement when assessing a company's financial position. This is especially important if you are planning to attract investments to scale your business. Reliable financial statements increase your attractiveness to investors.

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The income statement is an indispensable tool for every entrepreneur. It provides a clear picture of the company's financial position, helps to identify hidden costs and optimise resources. Using this report allows business owners to plan effective strategies, make informed decisions based on real data, and ensure business stability and growth in the long term.

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How to create a high-quality Profit and Loss report?

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A well-crafted income statement is the foundation of your business' financial health. It not only helps you understand the current state of affairs, but also opens up new opportunities for growth. To make your report as useful as possible, follow these key steps:

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1. Select the reporting period. Determine the period for which the report will be prepared. It can be a month, quarter, or year, depending on the specifics of your business and industry standards.
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2. Gathering financial information. Gather all the necessary financial data: revenues, expenses, operating profit (or loss), interest, taxes, and other financial indicators. It is necessary to collect not only the movement of funds on official accounts, but also on cash desks, cards, wallets, etc.
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3. Classification of income and expenses. Carefully classify all income and expenses by their purpose and nature. The main income (from the sale of goods or services) and additional income (from investments, licences, etc.) should be separately identified. Expenses should be divided into categories, such as salaries, materials, marketing, administrative expenses, etc.
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4. Calculate the net profit (or loss). Subtract total expenses from total revenue to calculate net profit or loss. This indicator is critical for assessing the company's financial position.
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5. Comparison with previous periods. Compare the results of the reporting period with previous periods to identify trends and analyse the dynamics of financial indicators.
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6. Prepare an analytical report. After preparing the main income statement, prepare an additional analytical report that contains detailed information on individual components of income and expenses, as well as an explanation of the reasons for changes in financial indicators.
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7. Visualise the results. Use visualisation tools to improve understanding and ease of perception of financial information. Charts and dashboards help you quickly assess the company's financial position.
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Additional tips:

• Retrospective analysis. Compare results with previous periods to identify trends and predict future expenses and income.
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• Market analysis. Take into account changes in the economic environment and market trends that may affect the financial performance of your business.
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• Distribution of money. Separate your own funds from business funds. This will avoid the very common mistake of mixing finances.
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• Professional approach. Take the advice of a professional financier for qualified quick advice on setting up accounting. If you do not have the funds for ongoing support, the first consultation will set the owner on the right track.
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• Technological solutions. Use modern tools to automate financial accounting. For example, Finmap integrates with banks and payment systems, simplifying the process of data collection and analysis.

By following these steps and income statement standards, you will get a clear and objective view of your company's financial position. This will allow you to manage your business more effectively and make strategic decisions that will contribute to its growth and stability.

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For maximum convenience and efficiency, automate your accounting with Finmap and forget about complicated home-made spreadsheets. Finmap integrates with banks and payment systems, providing you with convenient graphs and dashboards that greatly simplify analysis and make informed business decisions.

User case card

Serious Development Agency IT company — development of mobile applications and sites for startups.

Web site: https://sda.company

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Alex Shubin — the founder of Serious Development Agency IT company.
Has 12 years of programming experience.
He started his cash flow management with Finmap 1,5 years ago.

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How can an owner of an IT company keep money in order in business if he works 17-19 hours per day and has literally no free time? And what if the company is located in Ukraine and, like most entrepreneurs today, he needs to take care of the team’s safety and continue to develop the business in conditions of total instability?

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You could postpone the task until better times. Or you could lay the foundations for systematic accounting now by understanding the numbers, seeing the current state of affairs clearly, and making confident decisions about the future based on the data. Alex, the owner of the IT company Serious Development Agency, chose this way.

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In this case, we will tell you how he managed to find the time and what results he achieved.

Given

The IT company, Serious Development Agency, has been developing mobile applications and websites since 2019. There are 16 people in the team, and they continue to grow. The number of projects and tasks from clients is also increasing.

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If you don’t keep organized cash flow management, it is easy to drown in the chaos of incomes, outgoings, regular payments and debts. That’s why Alex, the founder of the company, decided that it was necessary to implement systematic cash flow management.

I decided to get my business in order after all. Because I realized that I don’t understand what’s going on, how much money I could get out and so on. — Alex Shubin, founder of Serious Development Agency

Task

We always say, keeping track of the cash flow for the sake of keeping track is a mistake. Therefore, before you systematically put your money in order, you need to determine why you need to keep track of it and how cash flow management will help you grow your business. Alex has set himself these objectives:

• Get rid of the financial mess.

Clearly understand how much the company earns, how much dividends you can collect, and what is going on in your business.

• Monitor your account balances and planned incomes.

It is to see how much money is there right now and how much you can expect in the future.

• To save time.

Alex works 17-19 hours a day now. He doesn’t have enough time to focus on managing the cash flow.

In general, there is more work now, because we are constantly hiring more employees and have to pay attention to them. Plus, we must devote more time to customer service in order to reassure our clients that even in spite of the war we are able to meet their needs. — Alex Shubin, founder of Serious Development Agency

• To keep track of your cash flow in a systematic yet simple way

When I was entering everything into Google spreadsheets, I realized that there were some things I might overlook and not take into account. You need to spend some time setting it up, the same reports and so on. And since I understand that time is money, it’s easier for me to keep all the documentation in one place and have multiple options to run different reports, integrations… — Alex Shubin, founder of Serious Development Agency

Alex decided to implement Finmap to solve his business matters.

Solution

Alex first tried Finmap a year and a half ago. However, he did not manage to fully apply the features of the service to his business then and switched to another product. But Alex found many bugs that made his work more difficult. So he decided to go back to Finmap again

Why Finmap — because I was already a user. I had taken courses from both Ivan and Oleksandr*. — Alex Shubin, founder of Serious Development Agency

‍* Ivan Kaunov and Oleksandr Solovey are both co-founders of Finmap. Ivan led the course «Finance in plain language». Over time we expanded and supplemented the information, which resulted in Oleksandr Solovei’s «Business Money» course on how entrepreneurs can get from chaotic finances to a system in just 5 steps.

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With the service, Alex decided to use the help of a Finmap financial expert* straight away to save time on set-up and to see the focus points in cash flow management for his company.

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* Our users can request the help they need from Finmap’s financial experts and choose an assistant, manager or mentor. You can book free consultation and find out more about this service.

Book a free consultation!

An outsourced CFO will help you set up effective financial management and make informed business decisions

The first thing Alex did was to connect and add all the company’s accounts to Finmap, so he could see all the balances he have at the moment on one screen.

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The next step is to synchronize with Privatbank and the Wise money transfer system. So that all incomes and expenses are automatically uploaded to Finmap and displayed in the financial reports.

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The synchronization:

• saves time on manual data entry;
• makes keeping track of accounts easier;
• eliminates the risk of losing a particular payment.

Even small expenses that are often overlooked (such as transfer fees or payments for app and service subscriptions) will be taken into account automatically. As a result, users get a more accurate picture of the company’s financial situation.

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As one of Alex’s tasks was to understand how much the company earns, he paid particular attention to the Profit and Loss statement ( P&L)*.

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* The P&L statement shows a company’s profits and losses for a specific period, e.g. a month. It is generated automatically in Finmap based on the data entered by the user and fed into the service through integrations with banks and other services.

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Alex also plans to introduce regular maintenance of the payment Calendar* to control future income and to track upcoming expenses in advance.

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* By adding future expenses and incomes to Finmap, the user will see them in the Calendar and will be reminded to make the planned payment or collect client debt in a timely manner.

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Plus, the Calendar will show whether there is enough money to cover all expenses for a particular date or if there is a risk of a cash gap (a temporary situation where a business does not have enough money to cover all necessary expenses).

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However, the founder of Serious Development Agency also informed us of a feature of particular concern for his business.

I have this issue. I receive one payment, but this payment is allocated for several people at once. I have to split it up manually every time and calculate how much of this payment relates to one specific project and how much to another? It would be cool if we had a large payment coming in, and we could specify that a certain amount of money from that payment applies to a specific project. — Alex Shubin, founder of Serious Development Agency

Our development team is now actively working on implementing the functionality that Alex is missing. This feedback is vital to us as it helps us develop Finmap tools that our users can use to manage their specific financial needs more efficiently.

What’s the result

• Alex sorted out the mess in his finances and set up systematic cash flow management.

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With Finmap financial expert Karina, Alex was able to sort out what was going on in the company in January-February, including when the war in Ukraine began.

We set everything up, looked at what was happening between January and February and now there is an understanding of the numbers. — Alex Shubin, founder of Serious Development Agency

• Thanks to the connected integrations, the transfer of transaction data is automated; Alex doesn’t have to transfer it manually and spend time on it.

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• It is possible to see financial reports in a couple of clicks and understand what’s going on in the business. Reports are generated automatically in the form of easy to understand graphs and charts. There is no need to waste time putting tables together and then trying to make sense of dozens of columns of numbers.

Graphs are quite useful. You can even present the data in percentages in them. — Alex Shubin, founder of Serious Development Agency

The P&L report is also important to Alex because it allows him to easily track the company’s profits.

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• Alex plans to use a payment Сalendar within Finmap to monitor future incomes and expenses (e.g. to plan tax or loan payments).

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Most importantly, with his finances under control, he can now monitor the growth of his business. After all, as Alex says:

If we work in times of war, even from basements, what else can stop us?

Are you the owner of an IT company? Understand the finances of your business, clearly, see the profitability of each product/project, and accurately calculate your investments in new product development with Finmap.

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