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Following the Money To Understand Your Business Better
Why Knowing Your Cash Flow Matters
Understanding where your income comes from is one of the most empowering things you can do for your web design business. This week, I focused on running a Payments Collected Report, a simple but effective way to see how much money flowed into my business over the past year. Unlike a full financial report, this focuses purely on cash inflow—offering a quick, high-level snapshot of revenue trends without getting bogged down in expenses.
What Worked Well
I genuinely enjoy running this report every year. It’s a fast way to gauge my financial health without getting lost in the weeds of accounting details. While I noticed a slight dip in overall sales for 2024, I was still happy with my income, and seeing the actual numbers helped me appreciate the stability of my business, even during a challenging year.
Challenges: Letting Go of the Full Picture
One of the hardest things about this habit was resisting the urge to analyze everything. Business owners are trained to look at full profit and loss statements, expenses, and projections. But this habit is meant to be a quick snapshot—just a check-in on the total payments received. It took a conscious effort to remind myself that this wasn’t the time for a deep dive.
A Surprising Benefit: Motivation Boost
I didn’t expect how motivating it would be to see my total income for the year laid out so clearly. Instead of feeling overwhelmed by complicated reports, I could see what worked best for my business. It was also reassuring to see that my revenue stayed relatively steady despite a mid-year slowdown due to a family health emergency. The slight decrease wasn’t nearly as bad as anticipated, which gave me confidence heading into the new year.
Tools & Resources That Helped
- FreshBooks – My go-to invoicing software since 2011 made running this report quick and easy. (Learn more)
- FreshBooks Affiliate Link – If you're looking for a reliable invoicing system, FreshBooks offers 60% off for six months. (Check it out here)
Lessons Learned
The biggest takeaway from this habit was that a high-level overview can be just as valuable as a deep financial analysis. Sometimes, we overcomplicate financial tracking, making it more overwhelming than necessary. Taking just a few minutes to review my cash inflow boosted my confidence and helped me refocus on what's working in my business.
Moving Forward
I've decided that instead of just running this report annually, I'll start checking it twice a year—or possibly even quarterly. This will allow me to spot trends sooner and adjust without waiting until year-end.
How You Can Implement This Habit
If you've never run a Payments Collected Report, I recommend making it part of your routine. Start with a 12-month review, then consider running it biannually or quarterly. The process is simple: export payments from your invoicing software, sort by total income, and reflect on your top clients and services. You'll make better business decisions moving forward by keeping an eye on where your revenue is coming from.
Some links in this post are affiliate links, meaning I may earn a commission if you make a purchase—at no extra cost to you. I only recommend tools I personally use and trust. See my full disclosure here.
about the author
Cami MacNamara is a web designer and owner of WebCami LLC, a Seattle-based agency since 2002. She created Web Designer Habits to help web designers build smarter systems, stay productive, and run a business that works for them.