After You Launch — 3 Smart Financial Moves for Your First Year in Business
You’ve set up your entity, opened a business bank account, and started tracking your income and expenses. Great! That’s a strong start. But the first 12 months of running a business bring new financial challenges that can make or break your long-term success.
Here are three smart financial moves to make in your first year:
1. Build a Tax Cushion Early
Too many entrepreneurs forget about taxes until the first deadline hits. Start now by setting aside 25–30% of every dollar you earn in a separate tax account. This habit protects you from unexpected IRS bills and gives you peace of mind.
2. Pay Yourself the Right Way
Your business isn’t just about revenue—it’s also about paying yourself sustainably.
LLC owners: Take owner’s draws, but track them carefully.
S-Corp owners: Set a “reasonable salary” and run payroll before taking distributions.
Documenting how you pay yourself is key to staying compliant and building a steady rhythm.
3. Create a Simple Month-End Close Routine
At the end of each month, take one hour to:
Reconcile your bank and credit card accounts.
Review income vs. expenses.
Save updated reports (P&L, balance sheet) to a Year-End folder.
This small step keeps your numbers clean and ensures you always know where your business stands.
Why this matters:
The first year is about proving your business can sustain itself. By managing taxes, paying yourself correctly, and keeping books clean, you build a financial foundation that withstands scrutiny—and supports growth.