What do businesses spend their money on?

start up costs, overheads (fixed costs) and direct costs.

Start up Costs:
New Equipment
Website
Company Name
Logo/Signs
Aesthetics
Launch Party (Optional)

Overheads:
Bills (rent, power, wages)

Direct Costs:

Any spendature realting to the project (this is a variable amount, eg Computers for designers)
As well as keeping yourself informed about your business it's important that you keep your bank informed. The usual information that they require is:

Marketing plan
How much money needed?
How much money do you have?
How will you spend your money?
(If borrowing) How will you pay the money back?

Docs:

Estimate (Quote)
Invoice (Bill, has name, date, items/service and total cost)
Statement (reminder for any missing payments)

Simple terms and conditions:

Cancels and Returns
Risk/Title
Payment

Knowing where your money is going and coming from is extremely important. So many businesses fail due to a lack of care for figures. It is always going to be essential to get outside help if you are a creatively driven person as it can be a minefield of anxiety and stress.

Cash Flow

Update your cash flow Forecast(how will you spend your money)
Adjust your marketing to increase sales (market your productions to meet sales predictions)
Make contracts (Make sale)
Invoice your clients (recieve money)
Send reminder (if unpaid, send reminder)

- Receipts (This is your income)
Payments (This is your Expenditure)
Balnace (income - expenditure)

Positive Cash flow - earning more than you're spending
Negative Cash Flow - spending more money than you're earning

In starting up a business, a cash flow forecast is required. This could include things like payment for employees, rent.... always think about outsider help such as accountants if you are a creative person. There are are two types of accountants, Charted and Certified. Charted accountants are very expensive but don't do anything different to Certified ones.