Your net worth is the equivalent of your financial pulse. It tells you where you stand today and is an important metric to keep an eye on. Similarly, your income statement, and cash flow, is the financial pulse of your business.
When I first started Just Start Investing in January of 2019, I didn’t set up a rigorous accounting or bookkeeping process. Frankly, I didn’t need to, because I wasn’t really making or spending any money. I had a simple Excel sheet and that did the trick.
However, as Just Start Investing grew beyond 1 to 2 transactions per month, so did my need for a better accounting system. At the end of 2020, I overhauled the Excel sheet that tracked my expenses and revenue, including line items for hosting fees, freelance design costs, display ad income, and affiliate income. I