Protecting Your Hard Work: Essential Financial Controls for the Solo Founder
Hi Mobsters, It’s Sophie here, Mum, CIMA qualified, and the founder of WrightCFO.
I hope you enjoy this month’s blog, if you have any questions, as always please get in touch or leave a message in the comments box below.
You're a solo founder. You're the CEO, the head of marketing, the chief coffee-maker, and probably the only person who knows the wifi password. You're a one-person whirlwind of entrepreneurial genius, and frankly, you're smashing it.
But when you're busy building an empire, the last thing you want to do is spend your evening looking for a receipt for that fancy new font you bought. This is where things can get messy. We're not just talking about losing a few quid here and there; we're talking about making it impossible to see if your business is actually making money, and leaving yourself open to some seriously awkward conversations with the taxman.
As a fractional CFO, I've seen it all. I’ve seen solo founders with a bank statement that looks like a drunken night out—a blur of business expenses, personal shopping, and mystery transactions. It's time to stop the chaos. You don't need an accountancy qualification. You just need a few simple habits to protect your business and your sanity.
The Golden Rule of Money
This is non-negotiable. It's the financial equivalent of 'don't eat yellow snow'. You absolutely, positively must keep your business and personal finances separate. Mixing them up is a one-way ticket to a world of pain. Your business is a proper, grown-up entity, even if its head office is your spare room.
The Action Plan:
Get a separate business bank account. If you don't have one, stop reading this and go set one up. Seriously.
Get a business credit or debit card. Use it for all business expenses.
Create a rule for yourself: Business stuff goes on the business card. Personal stuff goes on your personal card. If you're buying a new laptop for work, it's the business card. If you're buying snacks for a Netflix binge, it's the personal card. No exceptions.
This simple step alone will make your life a million times easier at the end of the month and, crucially, at tax time.
Tame the Paper Monster
I know, I know. That shoebox of crumpled receipts under your desk has a certain vintage charm. But it's not a financial control; it's a future headache. The paper trail is your proof, your evidence, and your record. Losing it is like trying to remember what you had for breakfast three weeks ago—impossible.
The Action Plan:
Go digital. Your phone is your new best friend. Use a receipt-scanning app like Dext, Expensify or Xero Expenses. Snap a photo of every receipt as soon as you get it. The app grabs the info and sends it straight to your cloud accounting software. Magic.
Invoice like a pro. Don't just send an email with a bank account number. Use professional invoicing software. It tracks who has paid you, sends automated reminders to that client who's "just about to pay," and keeps a clean record of your income.
Set a date with your numbers. Block out an hour every Friday for "Finance Fun Time" (or just "Friday Admin," if you're a realist). Use this time to upload any stray receipts and send invoices. It's a small task that prevents a huge pile-up.
Your Monthly Financial Sanity Check
If you don't look at your numbers, you're flying blind. You're a brilliant pilot, sure, but wouldn't a cockpit dashboard be handy? Bank reconciliation is your dashboard.
What's reconciliation? It's just a fancy word for checking that the transactions in your accounting software match the transactions on your bank statement. It's a quick check to make sure everything adds up.
The Action Plan:
Reconcile monthly. Seriously, a solo founder can do this in about 30 minutes with cloud accounting software like Xero or QuickBooks. It flags any missing transactions, bank errors, or—God forbid—any dodgy activity.
Look at your Profit & Loss statement. Once your books are up to date, take a look at your P&L. Is your revenue growing? Are your expenses under control? This isn't just an accountant's document; it's your business's report card.
The Budgeting Lifeline
A budget isn't a financial straitjacket designed to stop you from buying things you want. It's a financial roadmap that shows you where you're going. It's your plan for success.
The Action Plan:
Create a simple budget. You can do this in a spreadsheet. List your expected income and all your fixed and variable expenses for the month.
Track your spending. Compare what you actually spent against your budget. Are you overspending on software subscriptions? Are you underspending on marketing? This tells you where to adjust.
Use your budget for decisions. Thinking of hiring a freelancer? Your budget will tell you if you can afford it. Want to invest in a new tool? Your budget will show you the impact.
The Takeaway
These financial controls aren't complicated. They’re just smart habits. They'll save you from endless admin, help you avoid nasty tax surprises, and give you the peace of mind to focus on what you do best: building a fantastic business.
So, ditch the shoebox, separate your money, and start protecting the amazing thing you've built.
Sophie Wright, ACMA, CGMA
sophie@wrightcfo.co.uk
+44 (0) 20 3151 7430
+44 (0) 7817 784 603
What is Mums WHo Build (The MOB)
At Mums Who Build, our mission is to support mums to build greater financial security, close the wealth gap, and reduce the impact of the motherhood penalty by helping you grow thriving businesses, fulfilling careers, and real financial confidence. Knowing your numbers—personally and professionally—is a key part of this journey. Whether you’re tracking expenses, setting goals, or planning for the future, financial literacy empowers you to make informed decisions and protect everything you’re working so hard to build. Join our MOB+ community to access more resources, connection, and support, and come and meet us in real life at one of our free events in East London.
