January is Financial Wellness Month, making it not only the optimal time to start new year resolutions and goals for yourself, but also for your business financially. Dedicating the first month of the year to taking a closer look at the financial health of your business or side hustle will ultimately benefit the company’s longevity. Financial wellness is a state of being where an individual or organization has the resources and knowledge to manage their finances effectively, and it’s crucial for the long-term success of any enterprise.

Here are a few steps you can take to check the financial wellness of your business or side hustle:

Review your financial statements: Take a look at your financial statements, including your income statement, balance sheet, and cash flow statement. These documents will give you a clear picture of your business’s financial performance and help you identify any areas that need improvement.

1. Monitor your cash flow: Keep an eye on your cash flow, which is the movement of money in and out of your business. A positive cash flow indicates that your business is generating more revenue than it is spending, while a negative cash flow means the opposite.

2. Track your expenses: Understand where your money is going. By tracking your expenses, you’ll be able to identify areas where you can cut costs and increase your bottom line.

3. Create a budget: Create a budget for your business and stick to it. A budget will help you manage your finances more effectively and ensure that you have enough money to cover your expenses and invest in growth.

4. Seek professional advice: If you’re not sure how to check the financial wellness of your business, consider seeking professional advice from an accountant or financial advisor. They can help you understand your financial statements, create a budget, and identify areas for improvement.

Overall, financial wellness is essential for the long-term success of any business or side hustle. By regularly reviewing your financial statements, monitoring your cash flow, tracking your expenses, creating a budget, and seeking professional advice, you can ensure that your business is financially healthy and well-positioned for growth.