Five building blocks Incorporated into the financial engine 

Financial management is one of the five essential building blocks incorporated into the financial engine. The financial team, accounting system, analytics and reports, banking, and money management all make up the foundation of a well-run business. Without a detailed and strategic money management system, it is very possible that you would run out of runway while success of your business is right around the corner.

At Molin and Molin, we understand the importance of a detailed system of bank accounts to escrow money in category priority and amount to make the best strategic decisions in handling cash flow. Money flows into your bank account usually in ebbs and flows, and the banking account system allows you to stabilize those varying flows of money to understand what is going on in your business by relating it to cash.

Reports are used as a guideline, but cash is used as a confirmation. There has to be a correlation between the profit that shows on the report and the cash in the bank. Mastering money management is a skill closest related to a chess match than it is just recording income and paying bills.

As a business owner, it is critically important to have a money management system that stabilizes the money that is coming in and allows you to evaluate outside factors like payables and receivables that have not yet happened but to account for in your strategy in executing paying bills, savings for sales tax, savings for IRA or 401K, and a pure profit account, among others.

A basic banking structure for us to put in general terms would look something like this: A profit account where all money flows into, from there determine how much money you need for payroll, operating expenses, liabilities to pay down, meals and entertainment, dues and subscriptions, sales tax collecting account, sales tax to be paid account.

Every business that I have worked for when I started that had one or maybe two bank accounts struggled and never knew what was going on in their business until it was too late and there was nothing that they could do about it. A1 bank account system does not allow you to measure runway by priority and category. An A1 bank account system is a washing machine of money in and money out without any knowledge at all of what's going on in your business. Are you gaining? Are you losing? Did you pay bills that you didn't have to and was unable to make payroll?

Our system of money management allows us to be in control and to make good decisions. Although businesses are in various financial places along the journey, our best reporting to a client when we generate pure profit is to report we have eight months of payroll, six months of operating expenses, four months of meals and entertainment. We have put away a significant amount of money in your tax savings account and in your 401 or IRA bank account ready to use if needed. Three months on meals and entertainment, we can cut your liabilities in half. We have all the sales tax money due for the period that has closed out, and we've collected all the sales tax so far.

What would it mean to you if we generate pure profits, and that financial report that I just described would be one of great news that I described to you? At Molin and Molin, we are here to help you create a system that is stable, secure, and profitable for your business. Choose us as your financial management partner and see the difference in your business's financial stability and growth.