Finance in Plain Language

How many times have you thought: “A month of crazy sales means everything is great”? And then — a zero in the final line. Sofia Rozhko, founder of The Body School and a Ukrainian beauty coworking space in Valencia, went through the same thing: painful investment decisions, expensive “gurus,” double renovation, and regulatory surprises.

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Each financial blow led her back to one thing — systematic and daily accounting. That’s what turned “the feeling of success” into controlled product economics, helped her avoid diluting her niche with complementary ideas, and taught her to invest only after closing the month, not “on emotions”.

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This case is about how to count to earn — and how to make decisions when your cash flow is at stake.

I truly became an entrepreneur when I started to systematically manage my money and accurately calculate my profit.
— Sofia Rozhko, serial entrepreneur, guest of the podcast “Wish I’d Known This Earlier”

What You’ll Learn from This Case

• Where the entrepreneur’s maturity point begins.
• How not to blur your niche by adding complementary products.
• Why “an expensive specialist” ≠ a strategy, and what remains your responsibility as a founder.
• How to avoid double website costs: technical specs, sales logic, roles.
• How to act when local regulations “break” your offline business.
• Why marketing is measured quarterly–yearly, not monthly.
• Why cash flow ≠ profit and how quarterly thinking brings peace of mind.

Lesson 1. Count and Control: Daily Accounting Ensures Profit

Entrepreneurship doesn’t start with a “spark” or turnover — it starts when you see real numbers every day: how much came in, how much went out, what’s left as profit, and where your limits are. After that, decisions become sober, and risks — manageable.

I truly switched on as an entrepreneur when I moved from intuition to systematic accounting and precise profit calculation. — Sofia Rozhko, serial entrepreneur

How You Reach “Maturity” with Money

1. Reality hits: expectations don’t match numbers — frustration appears
   
2. Decision time: you start tracking income/expenses clearly to see real profit, avoid cash gaps, and build a reserve.
   
3. Control achieved: you plan investments only after closing the month, understanding payback and your “risk ceiling.”

When you understand turnover and your own financial limits, decisions become much easier. — Sofia Rozhko, serial entrepreneur

What Accounting Changes

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Daily 10-Minute Ritual

Ten minutes a day is enough for the system to work.  — Sofia Rozhko, serial entrepreneur

• Daily: record all transactions by category (even “small things” — that’s where gaps appear most often).
  
• Weekly: review expense categories — ads, consumables, small recurring costs.
  
• Monthly: close the month, calculate profit, set investment limits for the next period.

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Minimum Set of Metrics

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Common Mistakes — and How to Avoid Them

• Mixing personal and business funds → separate accounts and access.
• Evaluating turnover instead of profit → focus on margin and net result.
• Spending/investing before month closing → close first, then invest
  

Accounting and saving are a way to live calmly: you see the picture and control your steps. — Sofia Rozhko, serial entrepreneur

Once you move from “feelings” to daily calculations and start making decisions based on data, you stop playing business — you start managing it.

Lesson 2. Don’t Dilute the Niche: Add a Complementary Product Only When It Solves a Specific Problem

Adding a “complementary” product doesn’t always mean strengthening the business. If the new addition dilutes your niche, makes clients take extra steps (logistics/time), and drags you into a broad funnel of competitors, you risk ending up with lots of operational hassle and zero in the final line.

When I added a physical gym to my niche product, I basically started competing with any gym near the client’s home. The focus blurred — and profit didn’t increase. — Sofia Rozhko, serial entrepreneur

Why This Happens

1. Market expansion → diluted positioning. The niche product becomes “just another” among giants.
   
2. Lower convenience → lower conversion. If clients must travel far, visit rates drop.
   
3. CapEx and OpEx eat up margins: rent, equipment, team — and a “great” month turns into zero.
   

The training spot must be close to home; one extra step often ‘kills’ attendance. —Sofia Rozhko, serial entrepreneur

How to Decide on a Complementary Product

1. Start with the problem, not the form.‍

First, define the problem you want to solve. For our community, occasional large training events at interesting locations were more effective than a permanent gym. — Sofia Rozhko, serial entrepreneur

Read more about financial accounting for sports clubs.

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2. Check the 4T of the new idea.

3. Assess the competitive funnel.
As soon as your product requires a fixed location, you enter the “near home” market. If you can’t win on convenience — don’t enter that format.

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4. Choose the easiest format for the goal.
Focus on the “community” goal → monthly events: strong emotional impact, low CapEx, lots of content and upsells.

Simpler Alternative

I always aimed for a narrow niche: the sharper the focus, the easier it is to promote the product. — Sofia Rozhko, serial entrepreneur

Mini-Playbook: How to Test a Complementary Product Painlessly

1. Formulate one task — e.g., “Increase engagement and upsells through an offline event once per month.”
   
2. Make a one-time event, not permanent infrastructure.
   
3. Set KPI for one iteration: registrations, show rate, upsell/repeat purchases after the event, NPS.
   
4. Define kill criteria: if 2 cycles in a row < X% show rate or upsell below threshold → shut it down.
   
5. Package the content: video/UGC to boost your digital funnel without extra budget.
   
6. Don’t touch the core: name, positioning, and message stay unchanged — the new format highlights, not replaces.

“Red Flags”: When Not to Launch an Add-On

• You can’t clearly state what single problem it solves.
  
• The format requires travel/planning/waiting — and the value doesn’t compensate.
  
• You’re entering a field where convenience and price dominate — and you lack an advantage.
• It requires CapEx that eats margin even in a “good” month.

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Decision Table: What to Do Instead of the “Expensive” Idea

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Lesson Conclusion

Before adding anything — name the problem. If the form blurs your niche or makes the client take extra steps, it will almost certainly eat your margin. — Sofia Rozhko, serial entrepreneur

In short: first — the task and the focus, then the easiest form, and only after small tests with clear KPIs — scale. If a decision does not strengthen your niche and the client’s convenience, you do not need it.

Lesson 3. You Can Delegate Routine, But Not Vision: You Are the Chief Marketer of Your Business

An expensive specialist or agency will never replace you in the main thing — the vision of the product, the niche, and the growth strategy. Delegate execution, but the “what, for whom, and why” will always remain your area of responsibility. Otherwise, you pay for the illusion of control, not for the result.

I started investing in a systematic approach only after admitting that the best marketer for my business is me. Strategy is my responsibility, not someone else’s. — Sofia Rozhko, serial entrepreneur

Why an “Expensive Specialist” Won’t Save You Without Your Vision (The Failure Mechanism)

1. Responsibility vacuum: you expect them to “show the way,” while the contractor expects direction from you — no one takes responsibility for the meaning.
   
2. Substitution of strategy with tactics: they launch “hands-on” work (creatives, ads), but without clear positioning, it’s just moving air.
   
3. Default disappointment: you expect a “breakthrough” without your involvement → expenses grow, but results don’t.

I invested, hoping someone would tell me how to run my business. But it turned out to be my responsibility — the vision and the decisions. — Sofia Rozhko, serial entrepreneur

What Always Remains Yours (Non-Delegable)

 A team works best when everyone knows their area, and the founder sets the direction and holds the frame. — Sofia Rozhko, serial entrepreneur

What to Delegate (and How to Do It Safely)

Founder’s Mini-Playbook: How to Work with Contractors / Team

1. Before anything: write on one page your ICP, problem, offer, promise of results, and USP.
   
2. One-page brief: campaign goal, segment, channels, budget/limitations, KPIs, kill-criteria, deadlines, and responsible people.
   
3. Sprint 2–4 weeks: don’t stretch it. A clear list of hypotheses → launch → record metrics.
   
4. Weekly review (30 min): 1) What did we launch? 2) What did we learn? 3) What do we cut? 4) What do we scale?
   
5. After the sprint: make the decision to “double down / rework / turn off” based on data, not mood.
   
6. Decision log: record why you made a decision — it disciplines you and saves money in future cycles.
   

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Roles Without Confusion (Who Is Responsible for What)

“Red Flags” Showing You Delegated Authority Where You Shouldn’t

• “We’ll do everything without your participation” — means there’s no vision or brief.
  
• No agreed-upon KPIs or kill-criteria — means no one will turn off the unprofitable.
  
• The contractor suggests rewriting the product/positioning instead of “how to sell what exists”
• You don’t see raw data or access — which means you make decisions “by feeling”.
• Promises of “guaranteed sales” — dishonest rhetoric in a risk-based market.
  

Founder Maturity Test (5-Minute Check)

• Can I explain in 60 seconds who we sell to and what value we deliver?
  
• Do I have a short tech brief for any contractor?
  
• Do I know the KPIs and measurement horizon for each channel?
  
• Do I sign off kill-criteria before starting the sprint?
  
• Do we have a weekly 30-minute metrics review?
  

 When the team understands zones of responsibility, and I set the direction — even difficult periods pass calmly and sustainably for the business. — Sofia Rozhko, serial entrepreneur

Lesson Conclusion

Expensive specialists can enhance, but never replace the founder as the bearer of vision. Delegate the hands — not the responsibility for meaning.  — Sofia Rozhko, serial entrepreneur

In short: you define the vision and the framework — the team executes. That’s how marketing stops being “magic” and becomes a manageable, profit-generating system.

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Lesson 4. A Website Should Sell, Not Just “Look Pretty”: Technical Specs, Conversion Logic, and Roles — So You Don’t Pay Twice

If there’s no clear technical task, sales logic, and role division, you’ll end up with a “beautiful picture” that doesn’t sell, endless edits, and a double budget for rework.

We handed the website to two teams — technical and ‘branding’ — but without a unified conversion logic. It turned out beautiful, but the product wasn’t revealed, and we had to redo everything.  — Sofia Rozhko, serial entrepreneur

Why Failure Happens

1. No single vision owner (product owner from your side) → “gray zone” between design and development.
   
2. The tech brief = “make a website” → no sitemap, conversions, states, integrations, SEO/analytics.
   
3. Branding detached from sales → site looks nice but doesn’t answer “what/for whom/why now.”
   
4. “Taste-based” approval → without KPIs or acceptance criteria, any edit seems “logical,” and deadlines stretch forever.

When you start without agreed rules and a clear list of deliverables, you’re basically signing up for extra costs. — Sofia Rozhko, serial entrepreneur

What Must Exist BEFORE Starting (Otherwise Don’t Start)

Now I always ask for the full list of what’s included in the job — otherwise, revisions turn into a second development. — Sofia Rozhko, serial entrepreneur

Technical Task Skeleton That Saves the Budget

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Roles and Responsibilities

Sprint Process with “Gates”

1. Discovery (1–2 weeks): goals, KPIs, ICP, sitemap, content skeletons.
   Gate A: all signed → proceed.
   
2. UX/Wireframes (1–2 weeks): flow, prototypes, CTA/form map.
   Gate B: approved on user tasks → proceed.
   
3. UI/Design System (1–2 weeks): layouts + adaptive, states.
   Gate C: “pixels” tied to KPIs → proceed.
   
4. Dev + QA (2–4 weeks): build, integrations, performance, analytics.
   Gate D (UAT): checklists, Lighthouse ≥ X, events tracked correctly.
   
5. Go-live + 30-day monitoring: A/B small tweaks, stabilization.
   

Checklist of a Page That Sells

• Hero: clear offer, target audience, 1–2 strong proofs, visible CTA above the fold.
  
• Problem → Solution → Proof: cases, reviews, logos, certifications.
  
• CTA on every screen: one primary action, one secondary.
  
• Forms: short, with error/success states, autofill, validation.
  
• Mobile-first logic: large tap targets, easy navigation, speed.
  
• Analytics: events on clicks/scrolls/submissions, real-time tracking.
  

“Red Flags” — Stop Signals Before You Start

• Brief sounds like “make us a website/landing” — no goals or KPIs.
  
• “We’ll design first, write later” (no content skeleton).
  
• No analytics/event plan or acceptance checklist.
  
• 5+ people “approve the design” — means there’s no single PO.
  
• Blurred responsibility — unclear who owns what in RACI.
  

Mini-Playbook: How Not to Pay Twice

1. Prepare a 1-page brief: goal, KPI, ICP, offer, CTA.
   
2. Approve sitemap and flow with CTAs/forms and all states.
   
3. Create content skeletons before design (headlines, theses, proofs).
   
4. Define RACI and acceptance criteria before starting.
   
5. Measure speed and analytics as part of acceptance (not “later”).
   
6. Keep a decision log: what/why was approved to avoid infinite revisions.
7. Start with an MVP landing page, collect data, then scale with templates and sections.
   

Lesson Conclusion

 A website is a sales tool. If you start without a tech spec, conversion logic, and defined roles, you pay twice — with money and time. — Sofia Rozhko, serial entrepreneur

In short: start with the goal and flow, then design and development. One decision owner, strict acceptance criteria, measurable KPIs. That’s when the website is not just “beautiful” — it makes money.

Lesson 5. Offline in a New Country: Ethics, Reinvestment, and Space Planning Against Losses

When an offline location “breaks” against local regulations, you face three temptations: to “somehow keep working,” to shut down everything, or to rebuild the model ethically and stronger. Sofia’s decision: don’t go into the “gray zone,” agree with a co-investor on reinvestment, and choose a better space where the planning itself increases potential revenue.

I chose a path that lets me sleep peacefully: not to work where it goes against the rules, but to find another place — even if that means doing the renovation twice. — Sofia Rozhko, serial entrepreneur

What an Offline Crisis Looks Like

1. Non-compliance of the space with regulations → either “somehow work” or stop and rebuild.
   
2. Unplanned costs (second renovation, search) → raises the issue of reinvestment.
   
3. Client experience suffers (noise / open zones) → value and price drop.
   

My rule is to sleep peacefully. If the format forces me to break internal ethical norms — it’s not my path. — Sofia Rozhko, serial entrepreneur

Decision Matrix

“I calculated: closing would cost more than reinvestment. My co-investor agreed — better to add funds and come out stronger.” — Sofia Rozhko, serial entrepreneur

Why New Planning = Better Economics

The problem with the old space was “incomplete” rooms (noise, no privacy). The new location allowed separating areas with doors and creating full-value rooms for higher-priced procedures.

When I saw that the new layout added one more full room in the highest-priced segment, the economics clicked instantly. — Sofia Rozhko, serial entrepreneur

Anti-Crisis Algorithm (Step-by-Step)

1. Ethics > “Somehow work” — immediately discard any option that breaks regulations.
   
2. Quick partner call: honestly outline the “close / reinvest” scenarios, amounts, and motives.
   
3. Unit economics on a napkin: calculate number of full workplaces × rate × utilization — before / after.
   
4. Aggressive search: view several properties daily; pre-define criteria for “handshake and sign.”
   
5. Trusted local manager: delegate authority to sign immediately if checklist is met.
   
6. Renovation done right the first time: include insulation, zoning, and process requirements upfront.
   

We viewed 3–4 spaces every day for several weeks. When my manager saw the right one, I allowed her to sign the contract on the spot — I trusted her. — Sofia Rozhko, serial entrepreneur

Space Selection Checklist (for Beauty / Office-Room Format)

General requirements derived from the case:

• Zoning / isolation: separate doors for each room, no noise transfer between floors/zones.
  
• Procedure privacy: no “staircase” half-zones — only full rooms.
  
• Capacity for economics: sufficient number of full rooms in “premium” categories.
  
• Legal compliance: meets technical and licensing requirements for your activity.
  
• Operational logistics: water / electricity / ventilation, restrooms, convenience for staff and clients.
  
• Lease terms: flexible entry/exit, clear deposit, realistic renovation deadlines.
  

Mini-Playbook for Reinvestment

1. Define your “point of no return” — how much you’d lose if you stopped today.
   
2. Calculate “after relocation” — number of full workplaces × ARPM (average revenue per month).
   
3. Negotiate with your co-investor: amount, stages, repayment/dividend terms.
   
4. Make a cash plan: separate budget for the second renovation + 10–15% buffer.
   
5. Create an urgent timeline: search (days), signing (hours), renovation (weeks).
   
6. Communicate with team/clients: clear deadlines, “why this is better,” relocation plan.
   

I wasn’t down to my last money — I lived off another business, so I could invest more. But I still made the decision based on numbers and principles. — Sofia Rozhko, serial entrepreneur

“Red Flags”: When to Stop and Rethink

• The space fails to meet regulations — “somehow” options are rejected.
  
• “Incomplete” workplaces that hurt UX and pricing — such a location can’t sustain the economics.
  
• No “safety cushion” or co-investor — build a financial plan first, then act.
  
• Contract offers no flexibility (rigid terms / penalties) — risk level is too high.
  

Quick Location Evaluation Formula 

Revenue/month ≈ (Number of full rooms × average price × average occupancy) − (rent + salaries + operations + monthly repairs/amortization).

If the new layout adds even 1–2 full rooms in a high-ticket segment — that’s often the difference between “zero” and “profit.”

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Lesson Conclusion

Never compromise on ethics and compliance — it always costs more. It’s better to reinvest and move to a space where planning and rules work for you. — Sofia Rozhko, serial entrepreneur

In short: ethics as a filter, numbers as the argument, planning as a profit lever. That’s how an offline business not only survives — it becomes stronger.

Lesson 6. Marketing Is Measured Over the Long Term: LTV, “Long Tails,” and the Quarter–Year Horizon

A monthly snapshot often lies. A channel that “didn’t bring” sales in 30 days can return them later due to a long customer path — and look strong on a quarterly or yearly horizon. Therefore, decisions to “turn off / scale” must be made by LTV and cohorts, not by yesterday’s ROAS.

We switched to counting every single number. Over a short stretch some channels looked weak, but over a year they were the ones that ‘pulled’ sales through the funnel. — Sofia Rozhko, serial entrepreneur

Why a Month Misleads

1. Long decision cycles. People don’t see you once: touch → subscription → event → purchase. Part of purchases gets attributed to other channels if you look only at last click.
   
2. Upsells and cross-sells. A product that starts “modestly” can pay back through upsell/cross-sell in subsequent months.
   
3. Community and content effect. Investments into the “top of the funnel” work with a delay; their revenue is visible on cohorts, not in a single report.
   

What looked ineffective in the monthly report ended up delivering sales. Conclusions should be drawn over a wider interval. — Sofia Rozhko, serial entrepreneur

‍How to Look Correctly: Three Measurement Horizons

Payback can be longer — look for your ‘20%’ at large scale, not in a short slice. — Sofia Rozhko, serial entrepreneur

Minimum Set of Metrics (No Fanaticism, But Daily)

Mini-Playbook of Channel Analytics

1. Open an “annual ledger.” Evaluate any channel in three windows: week / month / quarter–year.
   
2. Build cohorts. Fix the month of first touch and watch how that cohort buys at 30/60/90/180 days.
   
3. Track upsell/cross-sell. Tie additional purchases back to the initial channel.
   
4. Set payback boundaries. What payback term is acceptable for you? Decide within those bounds.
   
5. Don’t mix “hands” and strategy. A channel doesn’t live by creatives alone; if the message and offer are off-target — change the vision, not just the creative.
   

We started counting every number — and that showed it was too early to cut a channel by the month. Some stories pay back later. — Sofia Rozhko, serial entrepreneur

Table: Channels × Evaluation Horizon

“Red Flags”: When Your Numbers Deceive You

• You evaluate a channel by last click and cut the top of the funnel.
  
• No cohorts — you see only “today’s” sales.
  
• You confuse turnover with profit: scaling eats margin.
  
• Kill-criteria are undefined — unprofitable campaigns live for months.
  
• No clear test budget — you either “pour everything in” or fear trying.
  

Clear Decision Rules

• Scale if over a quarter the cohort hits LTV/CAC ≥ your threshold and payback is within bounds.
  
• Freeze/rework if the month is “red,” but there are signs of assists and upsell — recalc offer/creative and give the channel one more cycle.
  
• Turn off if two cohorts in a row fail to reach the LTV/CAC threshold and there are no assists.
  

Don’t cut a channel prematurely: for us it was the ‘long’ stories that made the result when we looked at a year, not a month.  — Sofia Rozhko, serial entrepreneur

Daily Discipline (So All This Works)

• 10 minutes daily — log the numbers and check campaign “health.”
  
• Weekly — a short review: what we launched / what we learned / what we switch off / what we scale.
  
• Monthly — close the month and recalc limits.
  
• Quarterly — cohorts and LTV, decisions on the channel mix.
  

Lesson Conclusion

You have to count everything — and for long enough. Only then is it clear what truly works and what eats the margin. — Sofia Rozhko, serial entrepreneur

In short: look beyond a month. Measure LTV and cohorts, keep test discipline, and make decisions by numbers, not mood. That’s how marketing starts to earn, not just “look impressive.”

‍Lesson 7. Cash Flow ≠ Profit: Think in Quarters, Invest Only After Closing the Month

A “hot” month with explosive sales can end at zero or in the red because ads, labor hours, and operating costs ate the margin. A “quiet” month, on the contrary, can yield a clear plus thanks to upsells and lower expenses. Therefore, make investment decisions only after you’ve closed the month, and evaluate effectiveness on a quarterly horizon.

I clearly realized: the number of sales in a month does not equal profit. From that moment I invest only after month-end closing and look at results by quarters. — Sofia Rozhko, serial entrepreneur

Why Cash Flow Gets Confused with Profit

1. High turnover ≠ high margin. As sales grow, variable costs (ads, team hours, logistics) grow too — the net result “thins out.”
   
2. Upsells lag in time. “Quiet” months make up margin via upsells, subscriptions, repeat purchases.
   
3. Emotional investments. On the wave of “everything’s flying,” it’s easy to spend in advance — and fall into a cash gap.
   

We had months that felt like ‘bomb-sales,’ but the final line was zero. The next month, without overdrive, turned out more profitable — thanks to upsells and lower costs. — Sofia Rozhko, serial entrepreneur

Working Frame: Month = Control, Quarter = Evaluation

I switched to thinking in quarters — decisions become calmer and more accurate. — Sofia Rozhko, serial entrepreneur

Signal → Cause → Action

I invest money only into the next month — after I’ve closed the current one and seen the real numbers. — Sofia Rozhko, serial entrepreneur

Your “Monthly Closing” Ritual (60–90 min)

1. P&L by products: revenue, cost of goods, margin, contribution to profit.
   
2. Cash flow: what came in/went out, taxes/salaries/rent, risk of gaps.
   
3. Decisions for month +1: test/investment limit, what we pause, what we scale.
   
4. Action log: why you made the decision (so you don’t “bounce” back and forth).
   

When you see turnover, limits, and real profit — decisions are much easier, and your mind is calm. — Sofia Rozhko, serial entrepreneur

“Red Flags” — When You’re Playing with Fire

• You make investment decisions before month-end closing.
  
• You judge success by turnover, not by margin/profit.
  
• You don’t track upsells and their contribution to the quarterly result.
  
• You mix personal and business money — there’s no real picture.
  

Finance is not a verdict about you as a person. Every business has failures and investment periods. What matters is to know what’s happening and choose your steps consciously.  — Sofia Rozhko, serial entrepreneur

Mini-Playbook: How Not to Burn Profit in a Successful Month

1. Fix the rule: no new spending until the month is closed.
   
2. At the peak, direct part of cash into reserve/cushion.
   
3. Any investment must have a limit and payback conditions.
   
4. Check that “fast” revenue hasn’t broken quality and service (or it will roll back the next months).
   

Lesson Conclusion

When I close monthly and evaluate quarterly — I run the business without panic: I decide by numbers, invest on time, and don’t confuse turnover with profit. — Sofia Rozhko, serial entrepreneur

In short: close the month → set a limit → invest; evaluate results by the quarter. That’s how you keep cash flow and profit under control.

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Control the Numbers — and You Will Control the Business

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If you boil all the lessons down to one principle — count and act from data, not from feelings. That’s what gives peace of mind, faster decisions, and a healthy margin.

Frequently Asked Questions

1) Where should you start financial accounting if you haven’t counted anything before, and how do you keep a 10-minute daily discipline?

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Start with simple and regular.

• Separate money: separate accounts/cards for personal and business.
  
• Set categories: income/expenses by directions, salaries, rent, ads, consumables, etc.
  
• Daily ritual (10 minutes): log all transactions for the day — even the “small stuff.” That’s where it leaks.
  
• Once a week: review what “ballooned” (ads, consumables) and tweak immediately.
  
• At month’s end: close the month, calculate profit, fix the investment limit for month+1, top up the reserve.
  
• Iron rule: no new spending until the month is closed.

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2) How to understand that a complementary product is diluting your niche, and what to replace it with without large CapEx?

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 Check the idea by 4T:

• Task: what single customer problem are you solving with this add-on?
  
• Target: is it the same segment where you are strong, or “everyone”?
  
• Trip: does the client have to travel/plan/spend time? Any extra step — minus conversion.
  
• Trade-offs: are you sacrificing focus, margin, positioning?

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If at least two points are “red” — don’t go into infrastructure. Replace with lighter formats:

• One-off community events instead of a permanent location.
  
• Partner venues instead of your own space.
  
• Small tests with KPIs (registrations, show rate, upsell) before any scaling.

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3) How to work with expensive specialists/agencies without “draining” the budget: what you must keep, and what to delegate?

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Your responsibility:

• Vision/positioning, priorities, budget boundaries, KPIs and kill-criteria.
  
• Final decisions based on sprint results.

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What to delegate to contractors:

• Media buying, production/creative, analytics/dashboards, operational content.

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How to work in a process:

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1. 1-page brief: who it’s for, offer, goals, budget, KPIs, kill-criteria, deadlines.
   
2. Sprint 2–4 weeks with a clear list of hypotheses.
   
3. Weekly review (30 min): what we launched → what we learned → what we turn off → what we scale.
   
4. Decision log: briefly record why you made a decision — this saves money in the next cycles.

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Red flags: “we’ll do it without your participation,” no KPIs/kill-criteria, no access to raw numbers.

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4) How to launch a website that sells: which tech spec and roles do you need so you don’t pay twice?

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 Don’t start without these basic blocks:

• Goal and KPIs: inquiries/demos, target CRs, time to first lead.
  
• ICP + offer: who the page is for, what value and proofs you provide.
  
• Sitemap + UX conversion flow: CTAs, forms, “success/error” states.
  
• Content skeletons before design: headlines, theses, social proof.
  
• RACI: who is responsible/approves/executes.
  
• Acceptance criteria: list of requirements and metrics (speed, analytics, events), UAT checklist.

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Roles:

• Product owner (you/CMO): vision, KPIs, “go/no-go”.
  
• UX/UI: flow, mockups, design system.
  
• Dev/QA: implementation, integrations, speed, testing.
  
• Content/SEO/Analytics: messages, semantics, events, dashboard.

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Start with an MVP landing page, collect data, then build out.

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5) When to switch off or scale a marketing channel: how to count LTV, cohorts, and payback — and not confuse cash flow with profit?

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Look at three horizons:

• Week: technical health (CTR/CPM/first leads).
  
• Month: CAC/CPA, stage-by-stage conversions.
  
• Quarter–year: LTV by cohort, payback, upsell/cross-sell and assists.

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Decision rules:

• Scale if over the quarter LTV/CAC ≥ your threshold and payback is within bounds.
  
• Freeze/rework if the month is “red,” but you see assists/upsell — give the channel one more cycle with a revised offer/creative.
  
• Turn off if two cohorts in a row don’t reach the threshold and there are no assists.

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And remember: cash flow ≠ profit. Make investment decisions only after closing the month, and evaluate channel effectiveness by the quarter — otherwise, you risk shutting down channels that show results in the long run.

At a certain stage of growth, a successful business faces a critical choice: to remain at the level of intuitive management or to move to a systematic approach.
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This is especially true for finances, where every mistake can be costly. A company that has been in the LED lighting and illumination business for 16 years found itself at just such a turning point. They needed to do more than just keep accounts; they needed to see the full financial picture, learn to model the future, and prepare for European standards.

We decided to build a financial model — the pillars of financial reporting: P&L, Cash Flow, Balance Sheet — to see the whole picture of our ecosystem. — Alexander Kravchuk, Chief Financial Officer of an LED lighting import company

What You Will Learn From This Article

In this case study, we will examine how a company in the LED lighting market began its transformation from entrepreneurial chaos to systematic financial management:

• What problems the business faced before making this decision
• how they found Finmap experts and why they chose the financial model;
• what insights they gained during the implementation phase;
• how the vision of the business changes when a transparent financial system appears;
• what advice the company gives to other entrepreneurs who are hesitant about implementing financial tools.

About the Client's Company

The company is an importer of LED lighting and backlighting with a 16-year history; it operates at the intersection of B2B/B2C and sees light as an emotional tool for space, not just a technical product.

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The business is entering a phase where scale requires a system: instead of "heroism" — regulations, instead of assumptions — numbers, instead of "no one's" tasks — specific responsibilities.

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During this time, the company has grown from a small entrepreneurial project into a powerful business with its own ecosystem of areas of focus. However, with growth came the typical challenges of a mature company: it is difficult to see the full picture of finances, decisions are often made "on intuition," and new areas of focus require clear calculations.

There are now many of us, and we are currently in a phase of transformation. Based on the Adizes model, we are somewhere between an entrepreneurial company and a systemic one. — Oleksandr Kravchuk, Chief Financial Officer

It was at this point that the team realized that further development required a financial system that provided transparency and manageability. The goal was not just to "count profits," but to see the full financial picture of the company: where the funds come from, where they go, which areas are really profitable, and how to plan the next steps.

We urgently need to track financial flows. We are transitioning to European legislation. We need to understand our capitalization and our value so that we can be evaluated. — Oleksandr Kravchuk, Chief Financial Officer

Why Is This Necessary for Business

• To create a systematic financial model with clear pillars: P&L, Cash Flow, and Balance Sheet.
• To prepare for the transition to European accounting standards, which require transparency and regularity.
• Calculate new business directions in advance through unit economics and scenario modeling.
• To identify the person responsible for finance — the "pillar" of the process that maintains financial discipline.

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The company did not simply decide to "create a financial model," but laid the foundation for systematic management. For growing businesses, this is always a turning point: it is here that the ability to not only earn money, but also to understand one's own value, capitalization, and potential for scaling is formed.

Difficulties and a Turning Point

The company grew to a point where its scale began to require a system. Intuition and "manual math" no longer yielded results — rules of the game, accountability, and reliable figures were needed to make decisions.

What Hurt in Practice

• Finances without a complete picture. P&L, cash flow, and balance sheet reports are not consolidated into a single model → it is difficult to see the company's "ecosystem."
  
  
• Risky scaling. We wanted to open new areas, but without unit economics and scenario modeling, this threatened mistakes and losses.
  
  
• Regulatory pressure. The transition to European legislation required transparency, regularity, and standardization of data.
  
  
• Blurred responsibility. Without an "owner" of the process, finances stalled — decisions were made slowly, and data was collected unevenly.

We want to move forward and explore new areas. And in order to avoid making certain mistakes, we decided that it was time for a business model. — Oleksandr Kravchuk, Chief Financial Officer

How the Decision Was Made

The need to implement a financial model had been on the radar for a long time, but the conscious transition began in the fall. Then there were about nine months of action: internal discussions, understanding the risks, and searching for an approach.

We wanted to implement a financial model quite a long time ago. It happened last fall, and we worked toward it for nine whole months. — Oleksandr Kravchuk, Chief Financial Officer

Events that triggered systemic changes:
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1. Expertise of the Finmap financier. The team saw a practical approach to financial management in a sprint.
   
   
2. "Pillar of responsibility." We brought in a CFO so that one person could track the model and data on a daily basis.
   
   
3. The decision to build a financial model. Launching work on P&L, Cash Flow, and Balance Sheet as a basis for forecasts and scenarios.

We entered the sprint and saw the Finmap financier. Then we already had a CFO. And with the emergence of the pillar of responsibility, we decided that we could apply the financial model. — Alexander Kravchuk, Chief Financial Officer

This turning point is not about "pretty tables" but about decision-making: when each next step is confirmed by a model, not by the hope that "somehow it will work out."

Searching for a Solution and Collaborating With Finmap

When the team finally realized that it was risky to move forward without a systematic financial model, they began to look for a solution. The task was clear: not just to get a table or a tool, but to build a financial foundation for the business — a model that would show what was happening inside the company, provide forecasts, and help make informed decisions.

How They Found an Expert

The decisive moment came when the team participated in a finance management sprint, where Alexander became acquainted with Kateryna Suprun's expertise. It was then that they realized they needed not just consulting, but the deep involvement of a specialist who would build a model based on the company's real processes.

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Finmap offered a format that met the key needs:

• development of a financial model with three main reports — P&L, Cash Flow, Balance Sheet;
• systematic data logic — when all indicators are combined into a single ecosystem;
• involvement of a CFO as a "pillar of responsibility" who keeps processes running on a daily basis.

How the Collaboration Went

The work was done entirely online, with clear security rules, deadlines, and scheduled meetings. This became a separate insight for the team — the quality of service does not depend on the format.

At the first meeting, we discussed security and who owned the resources, and we agreed. Subsequent meetings were held without delays. The service was top-notch. The quality online was the same as offline. — Alexander Kravchuk, Chief Financial Officer

In fact, the company has built a new financial cycle:

• regular financial meetings with updates on key indicators;
• standardized data collection processes;
• a single reporting format where all departments work with the same figures.

The ultimate goal of this collaboration is not just to create a model, but to make finance a manageable element of growth rather than a pain point.

Changes That Have Taken Place During the Collaboration

Although the project is still in progress, the company has already achieved tangible results in the organization of finances, data transparency, and the quality of management decisions.

The financier highlighted the aspects we need to pay attention to. He allowed us to look at the financial history from different angles. We came to understand how to collect unit economics. — Alexander Kravchuk, Chief Financial Officer

1) Visibility of weaknesses → priority actions

• Was: intuitive suspicions about "where it hurts."
• Now: a specific list of risk areas with priorities for elimination (what we are doing now/in the next sprint).

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2) Unified logic of data and reports

• Was: fragments in different tables.
• Now: a model framework with three pillars (P&L, Cash Flow, Balance Sheet) and agreed rules for collection/reconciliation.

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3) Understanding unit economics

• Was: overall margin without details.
• Now: a clear approach to "how to collect" units, which drivers to count, how to make decisions at the SKU/channel level.

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4) "Pillar of responsibility"

• Was: blurred role, financial tasks "hanging in the air."
• Now: the CFO tracks data and models on a daily basis.

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5) Quality of service and process (online)

• Was: doubts about the remote format.
• Now: agreed security, clear meetings without delays; quality is not inferior to offline.

In my opinion, 10 out of 10! Finmap service is top notch. — Oleksandr Kravchuk, Chief Financial Officer

Transformation of the Financial System

Advice for Entrepreneurs

This is a concise set of practices that stem from the team's experience and can be applied to your business right now.

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1. Assign a "responsibility pillar" before you start

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Without an internal owner (CFO/controller), the financial model becomes nothing more than a pretty file. The owner is responsible for collection, reconciliation, updating, and regularity.

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2. Start with a minimum scope v0

• Three reports: P&L, Cash Flow, Balance Sheet (12-month history).
• 10–15 drivers (price, conversion, average check, cost, payment terms, exchange rate, etc.) with designated responsible parties.
• 3 scenarios: base/growth/stress.
• Weekly financial rhythm: brief review of actual vs. planned and adjustment of assumptions.

3. Formalize data and security rules

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At the first meeting, record: who owns the artifacts, where the model lives, who has access, how backups are made, and what SLAs are in place for updates.

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4. Measure usefulness, not the "beauty" of reports

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Key metrics of system maturity:

• response time to "what if?" (hours → minutes);
• model update frequency (times/week minimum);
• accuracy of forecasts vs. actuals;
• percentage of decisions made based on the model.

5. Don't scale chaos — count units before growth

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Launch a new direction/SKU only after calculating the margin, sensitivity to price/exchange rate/payment terms, and testing in three scenarios.

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6. Use "feedback outside the technical specifications"

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Ask an expert about weak areas, even if they are not included in the basic list of tasks — this is often where the main value lies.

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7. Online = offline in terms of quality — if there is a process

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Set a schedule for meetings, deadlines, and responsibilities. Discipline makes remote collaboration no less effective.

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These steps do not require ideal conditions — just management decisions and discipline. This is where controlled growth begins.

Frequently asked questions 

1. How long does it take to implement a financial model in an average business?
It depends on the size of the company and the quality of the data. In this case, it took about three months from the start of the sprint to the first working version of the model (P&L, Cash Flow, Balance Sheet). If the data is chaotic, it can take up to six months to prepare.

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2. Who should be responsible for the financial model?
The key is the "pillar of responsibility." In this case, it was the CFO, who tracks data daily, checks reports, and is responsible for regular updates. Without such a role, the model does not "live" — it turns into a useless file.

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3. Can a financial model be implemented remotely?
Yes. The online collaboration format works just as effectively as offline if security rules, deadlines, and communication format are defined from day one. In the case study, the company worked completely remotely — without delays and with high-quality processes.

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4. What are the first results that can be seen after launching the model?
Even at the creation stage, the model provided insights into the weaknesses of the business, allowed us to review financial flows from different angles, and begin to form a unit economy. This is not just "reporting," but a new level of business vision.

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5. Where should an entrepreneur who wants to systematize their finances start?

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Step by step:
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1. Appoint a person in charge (CFO/controller).
2. Determine the minimum set of financial reports—P&L, Cash Flow, Balance Sheet.
3. Collect key drivers (10–15 indicators that affect profit).
4. Start with a baseline scenario, then add "optimistic" and "stress" scenarios.
5. Set the frequency of financial meetings (weekly or biweekly).

A financial model is the owner's "coordinate system": it shows where the business is going and at what cost.

Do you run a business, but do you really manage its money? How much is currently in the accounts? How much will you earn in a month? Will you be able to pay salaries if a major client delays payment?

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If there is no answer — the business is already playing against you. Excel with twenty tabs shows only part of the picture, and accounting reports are more like a “snapshot of the past” than the real state of affairs. Forecasting? Usually it happens intuitively, not according to a plan.

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Almost every entrepreneur goes through this chaos in finances. The question is not whether there are mistakes, but how much they cost.

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Today you can choose different tools: from familiar Excel spreadsheets, to 1C accounting systems, and modern online solutions. And the right choice determines how confidently you will control your business.

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In this article, we will compare three of the most popular solutions:

• Excel — flexible, but manual;
  
• 1С — a solid system for accounting;
  
• Finmap — a modern alternative to Excel and a convenient online tool for financial management.
  

We will look at them based on key parameters that matter to a business owner:

• how much time financial management takes;
• how easy it is to work without an accountant;
• the level of automation in financial accounting and integration with banks/CRM;
• forecasting and planning capabilities;
• cost and value for the business.
  

After reading, you will be able to choose the best software for your business — the one that truly works for you.

Excel — a Flexible and Familiar Tool

Excel — the first step for most entrepreneurs into the world of financial accounting.Spreadsheets are simple, clear, and accessible to everyone.But as the business grows, Excel can turn from a helper into a headache.

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Excel specifications:

• creating any tables and reports;
• full flexibility in structures and formulas;
• availability on every computer;
• ability to work online through the cloud.
  

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Advantages:

• quick start without investments;
• full control over formulas and report appearance;
• flexible customization to your needs;
• free alternatives (Google Sheets).
  

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Disadvantages:‍

• 100% manual work that takes hours every week;
• risk of errors and broken formulas;
• no integrations with banks or CRM;
• difficulties with teamwork;
• no forecasts or warnings about cash gaps.

Risks: loss of files, outdated data, chaos as the business grows, hidden time costs.

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Best for: startups, freelancers, microbusiness. But if transactions start to pile up, it’s worth looking for an alternative to Excel.

1C — a Powerful Tool for Accounting

1C is a complete “combine” for accounting: from finances to inventory and payroll.It ensures compliance with legislation and automates a wide range of processes.

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1С specifications:

• handles accounting, tax reporting, and management accounting;
• can be local or cloud-based;
• flexibly customized for the business (but with the help of a programmer);
• regularly updated to meet tax authority requirements.
  

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Advantages:

• single database for data and documents;
• automation of financial accounting and reporting;
• powerful analytics and detailed expense tracking;
• built-in compliance with legislation.
  

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Disadvantages:

• complexity of use without an accountant;
• high cost of licenses and support;
• slow with changes and additional integrations;
• not always a convenient tool for an owner who wants quick answers.

Best for: medium and large businesses that have an accounting team and need official reporting and advanced analytics.

Finmap — a Modern Online Tool for Business Owners

Finmap is not just another financial management software, but a dashboard that shows what’s happening with your money right now. It’s true automation of financial accounting that gives you control without unnecessary routine.

Finmap specifications:

• 24/7 online access from any device;
• integrations with banks, CRM, and payment systems;
• convenient cash flow visualization;
• forecasting of cash movements and alerts about possible cash gaps;
• a simple interface for the entrepreneur.
  

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Advantages:

• transparency and speed in decision-making;
• automatic import of most transactions;
• teamwork without the risk of data loss;
• forecasting of future expenses and income.
  

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Disadvantages:

• requires internet access;
• has a subscription fee, but it quickly pays off through time savings and error prevention.
  

Best for: small and medium business owners who need daily control, quick answers, and the ability to manage finances online.

Comparison: Excel vs 1C vs Finmap

What to Choose?

There is no universal solution — only the one that fits you right now:

• Excel — the basic option if you’re just starting out and want to simply track expenses.
• 1C — the choice for businesses with large transaction volumes and an accounting team.
• Finmap — the alternative to Excel for entrepreneurs who want transparent online financial management, automation, and confidence in tomorrow.
  

Choose a tool that not only sums up the past but also helps plan the future.
Because a business that sees its money ahead always wins.

Frequently Asked Questions

1. Is Excel enough for managing business finances?
Excel works well at the start: it’s free, familiar, and gives basic control. But as the number of transactions grows, the risk of errors increases, along with time spent on manual input and challenges with forecasting. At this point, it’s worth considering an alternative to Excel.

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2. Why do entrepreneurs choose 1C?
1C is a powerful tool for accounting. It allows you to automate document flow, generate reports, manage payroll and taxes. It’s suitable for medium and large businesses with an accounting team. However, for daily financial control by the owner, the system may be too complex.

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3. How is Finmap different from Excel and 1C?
Finmap is an online financial management tool that combines the simplicity of Excel with the automation of 1C. It automatically pulls data from banks, payment systems, and CRMs, shows real-time cash flow, and helps prevent cash gaps. It’s convenient financial automation without unnecessary bureaucracy.

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4. How much do these solutions cost?

• Excel — free (or a one-time license purchase).
• 1C — an expensive system that requires spending on licenses, support, and specialists.
• Finmap — subscription-based, but it saves time and reduces the risk of errors, so it pays off.

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5. What is the best software for business?
It depends on the stage:

• If you’re just starting — Excel is enough.
• If you have complex accounting and a team of accountants — 1C.
• If you need clear and simple online financial management, daily control, and forecasting — Finmap is the best solution for your business.

Imagine: you run a business selling goods in several areas — wholesale, retail, online orders. Every day, dozens of payments come in from customers, transfers go out to suppliers, salaries are paid to the team, and expenses are incurred for advertising and logistics. And all this happens simultaneously.

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Instead of a clear picture of your finances, you have chaotic spreadsheets and endless banking apps. Roman, owner of Gold Kitchen, a company that sells professional equipment for HoReCa, spent several hours every day manually adding up numbers to understand what was happening with his money.

I spent four hours a day just reviewing and "dragging" funds from one month to another. — Roman, owner of Gold Kitchen

This is not just a routine — it is time that could have been spent on development: launching new directions, working with clients, scaling. But instead, the business lived "on feelings":

• it was unclear which sales direction was more profitable;
• financial flows were fragmented;
• decisions were made without data, "by eye".

This was the daily reality of a company that had outgrown its small business status and required a systematic approach.

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Everything changed when Roman decided to get out of this financial chaos: he connected Finmap and, together with an experienced financial expert, built a management accounting system that gave him a clear picture of all areas of the business.

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In this article, you will learn:

• how Roman transformed chaotic accounting into a systematic financial model;
• how Finmap saved hours of manual work;
• what insights he gained and how it influenced his business decisions.

Read on to see how transparent finances can become a growth point for your business.

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About the client and his business

Roman is a Ukrainian entrepreneur who develops a business in the field of goods sales. His company operates in several areas:

• retail sales;
• online orders;
• wholesale deliveries to partners.

This is not a start-up or a hobby — it is already a business with a team of employees and stable turnover. The work format is completely remote, because after 2019, the company gave up its office, and this creates additional challenges: financial control must be carried out in such a way that each participant in the process has access to up-to-date information in real time.

Features of Roman's business

• Several sales channels — it is important to see which one brings the most profit.
• Various sources of income — bank transfers, cash, online payments.
• Many transactions every day — dozens of payments from customers and suppliers.
• Team — several employees who work remotely and need transparent processes.

Why it matters

When a business grows, it is the speed and transparency of financial accounting that determine whether it can scale further. In Roman's case, there was no management accounting at all, and decisions about expenses and investments were made based on intuition.

I didn't know what my turnover was or which areas were profitable. I just had a rough idea of the figures. — Roman, owner of Gold Kitchen

This meant that:

• the owner did not see the real picture for each area of the business,
• he spent hours manually compiling data from various banks and Excel spreadsheets,
• could not predict cash gaps and plan payments.

Financial problems and the turning point

The growth of Roman's business brought not only higher turnover but also serious financial challenges. The more customers and sales areas appeared, the more chaos arose "behind the scenes."

The problem was that there was simply no financial accounting. — Roman, owner of Gold Kitchen

Main financial difficulties

The turning point

The culmination was that the business began to grow faster than the owner could control the finances.

This point is growth, i.e., an increase in financial burden. Finances force you to turn to specialists like you. — Roman, owner of Gold Kitchen

Every day spent on manual operations was a day when the business did not move forward. It was then that Roman realized he needed a system that would collect all the data in one place, automate routine tasks, and allow him to see the financial picture of the business at any moment.

Implementing Finmap and working with a financial expert

To overcome the chaos, Roman decided to take a systematic approach. He connected Finmap and invited a financial expert with over 20 years of experience working in large companies and importers. It was a turning point: instead of trying to figure things out on his own, the business received a professional approach to implementing management accounting.

The financial expert is top-notch. I am very pleasantly surprised. Knowledge is key. — Roman, owner of Gold Kitchen

How the implementation took place

• Analysis of financial flows — the expert helped describe all sources of income and expenses and divide them by area.
• Finmap configuration — the system was adapted to the specifics of the business: categories were created for each area, and rules were set for automatic accounting.
• Data synchronization — integrations where possible and file imports where automation is not available.
• Training the owner and team — so that Roman could quickly analyze data and make decisions without manual reports.

Challenges and solutions

Why it worked

• Expertise: the financial consultant didn't just set up the system, but explained how to use it for decision-making.
• Systematic approach: Finmap became the single system for all financial data.
• Speed: instead of hours of manual work, a few clicks are enough to see the real picture.

How the business changed after implementing Finmap

After implementing Finmap and setting up processes, Roman's business made a leap forward in financial transparency. Instead of chaotic tables and manual reports, there is now a single accounting system that shows the financial picture in real time.

One second is a huge time saver; you can see all your finances at any time of the day or year. — Roman, owner of Gold Kitchen

Key results

• The time spent on financial management has been reduced tenfold — instead of 4 hours a day, a few clicks are enough.
• Complete transparency — all income and expenses are visible, broken down by category.
• Clear analytics — you can evaluate the profitability of areas and see expenses down to the penny.
• Preparation for forecasting — a customized database for planning cash gaps and payments.
• Easier decision-making — the owner no longer relies on intuition but works with data.

The most valuable thing is the experience of how to solve a particular financial or accounting problem. — Roman, owner of Gold Kitchen

Roman emphasizes that the key to implementation was not only the system, but also the consultant's expertise, which helped to correctly distribute areas, set up processes, and teach the team to work with numbers.

The current situation and plans for the future

Today, Finmap has become the main tool for financial control of Roman's business.

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The owner sees the current financial picture every day and spends a minimum of time on routine tasks.

I understood more clearly how much each month cost. Everything is shown here, down to the penny. — Roman, owner of Gold Kitchen

Current status

• The basic model is set up — all income and expenses are divided into categories.
• Business areas are separated — now you can analyze which area brings the most profit.
• Single point of truth — all finances are collected in one place.
• The team is involved — some processes have been delegated, and the owner has freed up time for strategic decisions.

Plans for the future

• Use Finmap's features to forecast cash flow gaps.
• Optimize expenses by area to increase margins.
• Use Finmap as a basis for strategic financial decisions.
• Scale the business by opening new sales channels with already established management accounting.

Insights for entrepreneurs

This case study is not only about software implementation, but also about changing the mindset of the business owner.

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Here are the main lessons to be learned:

• Management accounting is not a luxury, but a necessity during the growth stage.
• System + expert = quick results. Professional support reduces implementation time and minimizes errors.
• Transparency brings peace of mind. When you see data in real time, you can make decisions with confidence.
• The owner's time is the main resource. Automation frees up hours that can be invested in development.

Before, there was accounting that worked more for the state. After, there was management accounting that works for the company. — Roman, owner of Gold Kitchen

Roman's story: Chaos in finances is not a death sentence. It is a signal that the business has grown to a new level and needs systematization.

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Finmap helped:

• bring all financial flows together in one place,
• free up time from manual work,
• see the big picture in each area,
• prepare the ground for scaling and strategic decisions.

Now we have more than just accounting for reports; we have management accounting that shows the real picture of the business. — Roman, owner of Gold Kitchen

Ready to get your finances in order? It's time to stop running your business based on gut feelings. Try Finmap for free and see how transparent finances can become a growth point for your business.

Frequently asked questions

1. Can I use Finmap on my own?
Yes, but the Gold Kitchen case study shows that working with a financial expert significantly speeds up the process. An expert helps you set up categories, divide business areas, and teach your team to work with data without errors.

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2. What if the bank or service is not integrated?
Finmap supports file import. In the case of Gold Kitchen, this is how NovaPay was connected and accounting for Monobank accounts was set up. This allows you to see all transactions in one place even without direct integration.

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3. How long does implementation take?
On average, a few weeks. It all depends on the number of accounts, business areas, and sources of income. After the initial setup, you can see the financial picture and save time on manual reporting.

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4. Do I need to spend time updating the system?
Yes, Finmap, like any CRM, requires attention: you need to update data and control categories. But the benefits are enormous: the owner gets a complete picture of their finances in seconds, instead of spending hours on manual reporting.

Financial management in the construction business is a constant game with dozens of variables: you need to account for material costs, contractor payments, team salaries, taxes, purchases, advances, and completion certificates.

Any mistake in the numbers can cost the company its margin, missed deadlines, and the nerves of the entire team.

This is exactly what Viora Build faced when the number of projects and the volume of work began to grow rapidly. Financial management was done in Google Sheets, but the growing business demanded something more.

We tracked all expenses manually, and this constantly led to mistakes. We needed a system that gives a clear picture and helps plan growth. — Simon, Operations Manager at Viora Build

The solution was the implementation of Finmap and the involvement of a financial manager who took over accounting, reporting, and financial planning.
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In this article, you will learn:

• how the company completely changed its approach to finances and freed up 20 hours a week for the operations manager;
• how automation helped avoid cash gaps and clearly see the profitability of each project;
• what became the decisive factor for scaling the business and what insights the team gained from this process.

Read on — and you will see that finances can be simple, and business management — predictable.

About the Client: Who Is Viora Build

Viora Build is a construction company from Portugal that specializes in building premium and luxury villas, as well as multi-story residential buildings.

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The company works with private investors and developers who expect not only high construction quality but also transparency in financial processes.
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A key feature of Viora Build’s business is its project-based work format. This means that several projects with different budgets, contractors, payment schedules, and financial plans are managed simultaneously.

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In such a situation, it is very easy to lose control:

• each project has separate purchases, completion certificates, and payments;
• changes in material costs directly affect profitability;
• it is necessary to ensure that there is always enough money in the accounts to settle with suppliers and staff.

The main driver of change was Simon. As an operations manager, he is responsible not only for controlling construction processes but also for the financial side: from budget allocation to profitability analysis.

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However, despite having a professional team, before working with Finmap the company’s financial management was far from ideal.

Simon recalls that he felt the need for a system from the very first days at work, but changes could only be implemented once the company had grown.

When we grew, we had capital, we realized that we could afford it, and immediately hired a financial manager. Because without this person, there could be no talk of rapid business development at all. — Simon, Operations Manager at Viora Build

Thus, Viora Build reached the point where financial chaos began to hold back business growth — and it was time to act.

What Held Viora Build Back from Growing

When the company began to scale, it became clear: the old approach to finances no longer worked. Accounting in Google Sheets, manual data entry, and lack of systematization created chaos that slowed down growth.

We managed all expenses through Google Sheets… and none of it was automated, which naturally led to mistakes. — Simon, Operations Manager at Viora Build

Main Challenges

The situation was complicated by the fact that the company was managing several large projects at the same time, and any mistake in calculations could cost tens of thousands of euros.

We needed a person who could prepare proper P&L and Cash Flow reports, make breakdowns by months and quarters, handle financial planning, and prepare commercial proposals for investors. — Simon, Operations Manager at Viora Build

Why Change Became Inevitable

‍The company understood the need for automation from the very beginning, but as Simon says, everything came down to resources.

This moment became a turning point: financial chaos began to directly affect the speed of decision-making and the company’s growth.

How Viora Build Put Its Finances in Order

To get out of financial chaos, the company decided to act comprehensively. Hiring a financial manager, automating processes, and gradually shifting to more strategic management — these three steps became the key to transformation.

We always understood that this was necessary. It just always came down to resources. When we grew and had capital, we decided that the time had come. Because without this person, rapid business growth would have been impossible. — Simon, Operations Manager at Viora Build

Hiring a Financial Manager

‍The company hired a financial manager who took over management, preparation of P&L and Cash Flow reports, financial planning, and commercial proposals for investors.

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Over time, he became the financial director and began performing more strategic tasks.

At first, we worked in the format of a financial manager: he categorized all operations, built reports. And now we are working on a deeper level in the format of a financial director, when he executes strategic decisions and provides us with reporting. — Simon, Operations Manager at Viora Build

Automation with Finmap

‍All financial operations were transferred from Google Sheets to Finmap. The system made it possible to manage operations by categories, see account balances, and get P&L and Cash Flow at any moment.

Delegating financial management to the financial manager was the only expectation — and he handled it. Now even more — he took the initiative and is also setting up an ERP system for us. — Simon, Operations Manager at Viora Build

ERP System Launch

‍The next step is integrating finance, procurement, and cost estimation into a single ERP system.

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This will make it possible to fully synchronize purchase planning, cost control, and issuing completion certificates.

We started implementing ERP because without it the financial director finds it difficult to work. There must be coordination between the estimation department, procurement, and finance — otherwise it’s hard to develop the direction. — Simon, Operations Manager at Viora Build

What Viora Build Gained After Implementing Finmap

‍Already within the first two months of cooperation, the company felt significant changes. Financial management stopped being chaotic, and the management team received a clear picture across all projects.

‍Now we have an automated financial management system. We have a financial director who can answer any question at any moment. We control whether there will be a cash gap and can plan our finances without driving ourselves into a corner. — Simon, Operations Manager at Viora Build

Tangible Benefits for the Team

• ‍Time savings:
  

Working with the financial director freed up at least 20 hours a week for me in finance. — Simon, Operations Manager at Viora Build

• ‍Project transparency:‍

Now we can accurately calculate our project margins and, thanks to this, net profit. — Simon, Operations Manager at Viora Build

• ‍Control and predictability:

We have a payment calendar. We clearly understand what is happening with the projects and which completion certificates need to be issued. — Simon, Operations Manager at Viora Build

• ‍Department coordination:
  
  The procurement department, finance, and estimations now work in sync. This saves time not only for the manager but for the entire management team.

Readiness for Scaling

‍The company now has not only control but also the tools for growth.

The next step is the launch of an ERP system, which will allow even more accurate cost forecasting and improve profitability.

This frees up time both for our director and for me as a manager. Now I can focus more on developing the company rather than on routine. — Simon, Operations Manager at Viora Build

Insights and Advice for Other Businesses

Collaboration with Finmap and the financial director became a turning point for Viora Build. The team not only organized the numbers but also saw how finances can become a strategic tool for growth.

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Simon shares the key takeaways:

If there are any doubts about working with Finmap, I can say that communication is at a high level, the work is at a high level — so I can confidently recommend this company.

Insights from Viora Build

Advice for Entrepreneurs

• Don’t postpone financial systematization. If the business is growing, “manual” spreadsheets will sooner or later start slowing down development.
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• Delegate finances to professionals. This frees up the manager’s time and gives the team clear rules of the game.
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• Invest in analytics. P&L, Cash Flow, and the payment calendar are not just numbers — they are your growth plan.
  ‍
• Look ahead. An ERP system and a CFO will help not only count money but also forecast the future.

What’s Next for Viora Build

The company is finalizing the implementation of its ERP system and preparing to scale the business into new regions.

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Transparent finances and strategic management make it possible to take on larger projects without the fear of “getting lost” in the numbers.

Now we can plan our finances without driving ourselves into a corner. This gives confidence and freedom for growth. — Simon, Operations Manager at Viora Build

Frequently Asked Questions

1. How long does it take to see the first results?
   In the case of Viora Build, the first results came within the first month — the company received P&L, Cash Flow, balance control, and the ability to forecast payments.
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2. Is a financial director necessary if there is already an accountant?
   Yes. An accountant works with past data, while a financial director plans the future and helps make strategic decisions.
   ‍
3. Is it difficult to implement automation within the team?
   No. At Viora Build there was no resistance — everyone saw the benefits and quickly adapted to the new system.
   ‍
4. Does the investment in Finmap and a financial director pay off?
   Yes. Simply freeing up 20 hours a week for the manager already covers the costs, not to mention the accuracy of financial decisions and avoiding cash gaps.
   ‍
5. What are the next steps after implementing financial management?
   The next step is launching an ERP system to integrate finance, procurement, and estimations. This will further increase planning accuracy and project profitability.

A marketing agency can grow rapidly: new clients, campaigns, budgets. But when finances are chaotic — all this growth turns into risk.

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Fact: almost 50% of invoices in the marketing field are paid late. Add to this the dependence on a few large clients and the absence of P&L — and your agency becomes a hostage to others’ decisions.

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In this article, you will find answers to three key questions without which it is impossible to reach a new level of financial management.

Why does an agency operate uncontrollably without cash flow forecasting?

In marketing agencies, the primary problem starts not even with clients, but internally. Incomplete or outdated reports, lack of discipline in financial management — and the owner sees the real picture only after the fact.

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At that moment, there may already be no money left for salaries or payments to contractors.
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Without up-to-date data, it is impossible to forecast cash flow. And without a forecast, the agency operates uncontrollably: spending more than it earns, delaying payments, and disrupting budgets.

Accurate financial management helps executives see trends and problems before they become a threat to the business. — Plymouth University

Quality data is not bureaucracy, but the key to profitability and peace of mind for the owner.

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That’s why we recommend creating or choosing a single system where all financial data will be collected. Ideally, this tool should be as automated as possible: it will save time and reduce routine.

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With such a system, you will be able not only to react after the fact, but also to forecast revenues and cash flow, which will open the way to stability and growth.

What a Forecasted Cash Flow Provides

1. Early detection of cash gaps.
   You can see when there won’t be enough money in the account to pay salaries, taxes, or contractors.
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2. Ability to make informed decisions.
   Expanding the team, increasing advertising budgets, or entering new markets becomes safer because it’s clear whether the cash flow can handle it.
   ‍
3. Scenario analysis.
   You can model what will happen if a client delays payment by 30 days, or how a new contract will affect overall liquidity.
   ‍
4. Transparent communication with the team and investors.
   When clear forecasts exist, the owner can confidently justify decisions to the team and partners.
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5. Reduced stress for the owner.
   Instead of chaotic account checks — a clear understanding of the company’s financial state tomorrow, in a month, or in a quarter.
   ‍

Take a short checklist — and in a few minutes, you’ll understand whether control over cash flow in your agency is really in your hands:

If you recognized your agency in this checklist, it means the problem with cash flow planning is already affecting the profitability and stability of your business.

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The next step is to understand how exactly you can bring order to your finances and get the tools for forecasting.

Key Finmap Tools for Financial Planning

‍If you chose Finmap as the foundation for financial management, you received more than just a convenient register of transactions. It’s a tool with bank integrations, the ability to import statements, automation through auto-rules, and delegation of responsibilities.

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But most importantly — Finmap allows not only to see cash flow in real time but also to forecast it. For this, the system provides several key tools.

1. Upcoming Payments

In Finmap, you can add transactions with a future income or expense date. This turns regular record-keeping into planning: you can see in advance how account balances will change on a specific day.

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This approach allows you to control liquidity and avoid situations where expenses overlap with delayed client payments.

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2. Payment Calendar

In Finmap, the calendar is generated automatically based on upcoming transactions. It shows when the company may face a cash gap and which specific payments are causing it.

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Thanks to this, the owner can negotiate a prepayment with the client in advance, postpone internal expenses, or plan a reserve fund.

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3. Toggle “Include Future / Exclude Future”

This tool allows you to view finances from two perspectives with a single click. In the “with future” mode, you see a forecast: whether there will be enough funds for salaries, contractors, and taxes if all planned transactions are executed. In the “without future” mode, you see the actual situation as of today.

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It is the comparison of these two views that gives the manager key information: how far the company is deviating from the plan and where risks arise.

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Together, these tools transform financial management from a reactive process into proactive control.
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This gives a marketing agency a number of tangible advantages:

• Systematic approach instead of chaotic spreadsheets and messengers
• A single source of truth about the company’s money
• Predictability of finances weeks and months ahead
• Optimal use of team resources and time
• Clear benchmarks for financial decisions

Why is the business at risk without control over receivables and payables?

In marketing agencies, financial risks often arise not from the lack of clients, but from payment delays. The work is done, invoices are issued — but incoming funds have to be waited for weeks.

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The British publication Financial IT states:

For the marketing and advertising industry, the level of overdue invoices is about 49% — that is, almost half of invoices are paid later than the established deadline.

An additional risk factor for marketing agencies is the concentration of income on a few key clients.

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Studies in recent years indicate that about 15% of agencies receive more than a quarter of their income from a single client, and this is already considered a critical signal for financial stability.
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Now ask yourself:

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1. Can you clearly name the TOP-3 clients who bring the most profit?
   ‍
2. Do you know which client most often delays invoice payments?
   ‍
3. Can you currently see the amount of debt for each client?
   ‍
4. Do you know which client owes your agency the most?
   ‍
5. Do you analyze what share of total revenue is generated by your TOP clients, and how safe this is for the business?

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If you cannot answer these simple questions — it means that mutual settlements in the agency are running out of control.

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And until there is a system that shows this picture in real time, your business depends on chance, discipline, and the goodwill of clients.

How Finmap Restores Control over Mutual Settlements

‍To ensure that mutual settlements no longer remain a “blind spot,” Finmap offers two key reports that give the agency owner transparency and real-time control.

• The Accounts Receivable report shows which clients owe money right now, how much, and which payments are still pending. This allows timely response to debts, control over client discipline, and avoidance of unexpected cash gaps.
  ‍

• The Accounts Payable report helps track obligations to contractors, freelancers, or services. Thanks to this, the owner understands which payments need to be prioritized and can plan expenses without the risk of disruption.
  ‍

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Additionally, Finmap offers analytical reports that allow you to assess profitability for each client. This makes it possible to determine which customers generate the main share of income and how dependent the business is on them. In this way, the owner can timely identify the risk of dangerous concentration and make decisions about portfolio diversification.

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Bonus: Invoicing in Finmap

‍In addition to controlling receivables and payables, Finmap has another useful tool — creating invoices for clients. You can generate an invoice for your services directly in the system and, if necessary, immediately send it to the client by email.

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This is not the core function of financial management, but a pleasant bonus: invoices are generated quickly, in a unified style, and always remain under control within your financial system.

Why is it impossible to assess the real state of the business without P&L?

Financial management will not be complete as long as the agency owner only sees the movement of money in the accounts. The main question is not how much money came in, but how and when exactly this money was earned and what result it brought.

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To move from operational control to strategic vision, a P&L — Profit and Loss statement — is needed.

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It shows:

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1. The origin of income. Which projects, clients, or channels generated revenue, and in which period.
   ‍
2. The real financial result. Net profit (overall and by projects) after accounting for all expenses, not just account balances.
   ‍
3. The efficiency of the operating model. Whether the business generates profit or is limited to simply moving funds between accounts.
   ‍
4. The structure of expenses. Where the company’s main costs are concentrated — staff, contractors, marketing, or administrative expenses.
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5. The dynamics of development. How profitability changes month by month and whether the company is truly moving toward growth.

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Cash Flow and P&L do not compete with each other — they complement one another. In the table below are practical questions that concern every agency owner and the report where you will find the answers.

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Where to Find the Answers: Cash Flow or P&L?

Cash Flow shows whether there is enough money for daily obligations. P&L answers whether the business is profitable and in which direction it is developing. Only together do these two reports provide you with control in the present moment and a strategic vision for the future.

How Finmap Helps Build a Complete P&L

In Finmap, the Profit (P&L) report is generated automatically based on the company’s data. It works on the accrual method: income and expenses are attributed to the period when the contract was signed or obligations were fulfilled.

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The report is flexible and multi-level. With filters, you can analyze not only the overall picture but also profitability by clients, projects, directions, or even individual campaigns.

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It is also important that Profit in Finmap has several visualization formats: charts, tables, and diagrams. This allows you to look at the same figures from different perspectives — from overall dynamics to a detailed structure of expenses and income.

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This approach reduces the errors inherent in simple cash-based accounting and provides managers with a tool for strategic decisions.

Why P&L Matters for a Marketing Agency

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1. Understanding true margin. In an industry with retainers and project-based payments, it becomes clear where the business earns and where resources are being spent.
   ‍
2. Transparency for investors and partners. It is easy to show the real financial result, not just reconcile balances.
   ‍
3. Scenario comparison. You can evaluate how profitability will change with a budget increase or the launch of a new client.
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4. Identifying hidden unprofitable clients. If payments come in regularly but expenses exceed income — this is immediately visible in the P&L.
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5. A basis for strategic decisions. Expanding the team, entering new markets, or optimizing expenses is based on facts and forecasts.

From Chaotic Spreadsheets to Transparent Finances: The Case of MURAHA Marketing Agency

MURAHA Marketing Agency helps businesses grow by developing marketing strategies and conducting audits. The team also manages targeted and contextual advertising, and when needed, takes on website development or involves trusted partners.

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Such a flexible model makes it possible to work with clients of different scales and collaborate with external contractors, which generates a significant volume of financial operations. At the same time, each area has its own specifics: regular monthly payments for marketing and one-time payments for website development.

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Learn more about how financial management makes project-based businesses profitable.

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All this creates a constant cash flow and requires a clear system of financial control.

Starting Point: Chaotic Excel

When COO Artem Tsokov joined the company and took over financial management, he inherited an Excel file where financial data was kept.
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The spreadsheet turned out to be chaotic and created more problems than benefits:

• dozens of tabs without logic;
• broken formulas that distorted data;
• no systematization of expenses and income;
• delayed transaction entries;
• constant risk of losing part of the operations.

Artem quickly realized that it was impossible to manage finances this way and started looking for a tool to systematize all the data. That solution was Finmap.

A New Approach with Finmap

For Artem, switching to Finmap was not just about replacing Excel but about finding his own ideal model of financial management.
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He went through several simple stages:
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1. ‍Experiments with data visualization
   Artem tried different ways of structuring finances multiple times — since Finmap allows you to customize accounting for specific business needs. Eventually, he defined the key financial indicators and built the system around them.
   ‍‍
2. Support from Finmap experts
   Customer support played a big role: specialists helped him choose the optimal data entry model, explained how to properly work with categories, tags, and projects. This helped avoid mistakes at the very start.
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3. Testing different scenarios
   By using the option to create several test companies, Artem was able to try out different approaches and choose the one that best suited the needs of his agency.

Transparency and Planning as a Result

The implementation of Finmap became a turning point for MURAHA Agency. If previously financial data was chaotic and unreliable, now the company has gained a transparent picture of cash flow and the ability to plan for the future.
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1. ‍Automatic integrations. Thanks to integrations with banks, the risk of losing transactions or failing to record expenses on time disappeared. All payments are automatically pulled into the system, and the team can immediately check who is responsible for what.
   ‍‍
2. Systematized accounting. A convenient structure with tags, categories, and projects appeared. This made it possible to separate different areas of activity, understand which ones generate the most revenue, and which need optimization.
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3. P&L and Cash Flow reporting. These reports gave the agency the ability to see both actual and planned performance on a daily basis: how much money is in the accounts, which expenses and incomes are planned, and where there is a risk of a cash gap.
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In addition, the company started using the payment calendar. Thanks to it, it became easier to forecast financial workloads and prepare for strategic sessions with a clear budget for the coming months.

Every day I see how much money we have now and which payments need to be made. If I see that expenses are higher than income — I can react in advance. —  Artem Tsokov, COO of the agency.

As a result, the team gained not just a tool for accounting but a real foundation for growth:

• reduced risks;
• optimized time;
• tactical and strategic planning;
• confidence in financial decisions.

Advice for Other Agencies

Artem Tsokov, COO of MURAHA Marketing Agency, advises other founders and managers of marketing agencies not to waste time on chaotic Excel spreadsheets:

There’s no point in even starting to manage finances in Excel, because that’s a path to chaos. It’s better to immediately define which expenses, income, and tags you want to track, and set it up in Finmap. This way you’ll save time, avoid rework, and get a transparent picture for analysis.

His main message is simple: prepare the structure in advance and implement a modern tool right away to get results faster and avoid unnecessary mistakes.

A Financial System as the Key to Agency Growth

The key to stability and development is not the number of clients or projects, but a financial system that shows reality.
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Forecasted cash flow, control over mutual settlements, and P&L — three pillars without which no agency can confidently build a strategy.

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Finmap helps bring everything together:

• see the real state of finances at any moment;
• forecast future payments and avoid cash gaps;
• control client debts and payment discipline;
• analyze business profitability by clients, projects, or directions;

No more chaotic decisions — only strategic development based on facts.
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Try Finmap — and see how your agency can reach a new level of financial order!

Frequently Asked Questions

1. How often should financial data be updated in an agency?
   It is recommended to manage finances in a mode as close to real time as possible. Even a delay of a few days in recording transactions reduces forecast accuracy and increases the risk of cash gaps.
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2. What is the difference between Cash Flow and P&L?
   Cash Flow shows the movement of money — when and how much actually entered or left the account. P&L reflects the financial result — income and expenses in the period, regardless of the payment date.
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3. How to assess dependence on a single client?
   You analyze the share of revenue generated by individual clients. If one client provides more than 25–30% of revenue, this creates a risk of financial instability in case the contract is lost.
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4. Which expenses are most often overlooked?
   “Invisible” expenses include freelancers, contractors, regular subscriptions to services, and unpaid client hours of the team. They often reduce real margin, even when revenue is growing.
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5. How to avoid cash gaps in a marketing agency?
   The basis is planning. It is necessary to forecast future inflows and outflows, use the Payment Calendar, and control accounts receivable. If cash gaps occur frequently, it is recommended to have a reserve fund to cover at least 1–2 months of operating expenses.

Imagine: in six months, your business grows from $17,500 to $65,000 in projected revenue — everything looks great. You have a team, experience, and a model that works. 

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But in a year and a half, you lose everything: investments, prepayments, trust — and the amount of losses reaches more than $1.3 million. More than a million dollars disappears before your eyes, even though it seemed that everything was under control.

It wasn't just a business — it was a blow to my pride and the realization that even the best skills won't save you if you don't see the real picture of the business. — Valeriy Chalyi, entrepreneur, guest on the podcast "If Only I Had Known Earlier"

This story is not about failure, but about a lesson that can save your business and your money. It's about how the scale of a business without the owner's big-picture thinking is a step into the abyss. How the lack of transparent financial control and wrong decisions lead to significant losses.

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Valeriy lifts the veil on real entrepreneurship: mistakes that are not usually talked about, important conclusions, practical tools, and tips that will help you:

• Save money, even if your business is growing rapidly.
• See the real state of your finances, not illusions.
• Make decisions that won't kill your project.
• Develop as an entrepreneur, because you are the main driver of the business.

Red flags: Do you recognize yourself?

• You only look at your bank account, not your financial statements.
• You make plans based on accounts receivable ("they'll pay soon").
• You don't have a reserve for at least two months of fixed expenses.
• You confuse markup and margin.
• Business no longer excites you; you see it only as a source of income.

If you've checked at least two of these points, this article is definitely for you.

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Read on if you are ready to see your business without rose-colored glasses and start real growth.

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Insight 1. Three reports without which a business is doomed to chaos

Many entrepreneurs are used to looking only at their bank account. If there is money, then everything is fine. But this is an illusion. Only three financial reports give an honest picture of what is really happening.

These three reports are the foundation: cash flow, balance sheet, and P&L. If you don't see where the money is going, how much is actually left, and what the profit is, you are not managing your business. — Valeriy Chalyi, entrepreneur

Even if a business looks profitable, a cash flow gap can occur at any moment. Without transparent reports, an entrepreneur cannot see:

• whether there is money to pay salaries and taxes;
• how much is actually left after loans and debts;
• which products or areas are eating into the margin.

The result is wrong decisions, lost opportunities, and the risk of bankruptcy even at the peak of growth.

How the three reports work in practice

Imagine a company that sold $50,000 worth of goods in a month. At first glance, this seems like a great result. But what do the reports show?

How to avoid financial chaos

1. Keep track of your cash flow every day. This will tell you whether you will have enough money tomorrow.
   
   
2. Review your balance sheet every month. You will see how resilient your company is to debts and liabilities.
   
   
3. Analyze your P&L weekly or monthly. This will give you an honest answer: is the business making money, or is it just circulating money without profit?
   
   
4. Combine the three reports. Only together do they show the truth: the money in the account, the structure of assets, and the real profit.

Finance is monitoring your business. Without reports, you are running in the dark. With them, you can see where the real money is and where the illusion is. — Valeriy Chalyi, entrepreneur

Insight 2. Cash is king: count only the money in your account

In the financial world, there is a simple but uncompromising truth: cash is king. The money that is actually in your account is the only thing you can count on today. Everything else — accounts receivable, customer promises, signed contracts — is just numbers on paper.

Use only the money you have in your account and count only on that money. All your accounts receivable, all the "he promised to pay me" — will not cover your bills right now. Cash is king. — Valeriy Chalyi, entrepreneur

What is the problem?

• The illusion of money. An entrepreneur looks at accounts receivable and considers them an asset. But this is not yet money.
• The "almost paid" trap. The business spends money, counting on payment that may not come on time.
• Double planning. The same money is already "earmarked" for taxes, salaries, and purchases — but in fact, it is not there.

Why is this dangerous?

When you make decisions based on expectations rather than facts:

• the risk of a cash gap increases;
• the company may be left without money for critical payments (salaries, rent, taxes);
• the business quickly becomes dependent on loans.

How to avoid this

1. Keep track of actual balances. Record how much money is in the cash register and in accounts every day.
   
   
2. Separate reserves. Taxes, salaries, and mandatory payments are no longer "your" money.
   
   
3. Be skeptical. Until the customer has paid, assume that you don't have the money.
   
   
4. Make decisions based only on facts. Look at the balance sheet and cash flow, not Excel spreadsheets with forecasts.
   
   
5. Do a weekly liquidity analysis. How much money is actually available today, tomorrow, in a week?

Table: "Money on paper" vs. "Money in business"

You can't put your business on hold and wait for others to pay you. Money in business is like blood in the body: if there isn't enough of it right now, the body dies. — Valeriy Chalyi, entrepreneur

5 rules for managing money in your account

1. Check your balance every morning.
   
   
2. Divide your money into categories: yours, others' (taxes, obligations), and reserves.
   
   
3. Don't spend future money — plan only with actual money.
   
   
4. Enter all expenses and receipts into the management accounting system.
   
   
5. Look at cash flow more often than turnover and P&L.

Insight 3. Reserves and liquidity: business resilience

Most businesses close not because they have no customers or profits. They close when they run out of money here and now. 

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The only protection against this is reserves and liquidity. This is the financial cushion that makes a company resilient: it withstands shocks and even becomes stronger after crises.

A company must have insurance capital — the most liquid thing possible. That is, money that you can take and put into the business as quickly as possible. A must-have — at least two or three break-even points should always be in the account. — Valeriy Chalyi, entrepreneur

What is the problem?

• Entrepreneurs spend everything "to zero," believing that money will always come in on time.
• No reserves are formed while the business is growing — and at the worst moment, there is no cushion.
• Without liquid reserves, even a temporary cash flow gap can kill a company.

Why is this dangerous?

• One unforeseen month (customer delay, tax surprise, equipment breakdown) can put the business on the verge of bankruptcy.
• The owner is forced to take out loans at 24–60% per annum, which "eat away" at the margin.
• Control is lost: the business begins to be driven by debt rather than strategy.

How to avoid this

1. Build up insurance capital. The minimum is 2-3 months of fixed costs (rent, salaries, taxes).
   
   
2. Maintain liquidity. Some of the money should be available "here and now," not in the form of goods or accounts receivable.
   
   
3. Separate reserves. Insurance (for force majeure) ≠ reserve (for development).
   
   
4. Use the "other people's money" rule. You can raise capital at interest, but only if you have a clear plan for repayment.
   
   
5. Be disciplined. Do not touch your reserves. They exist for crisis situations.

What does anti-fragility look like in finance?

I know of at least three businesses that went bankrupt not because they were unprofitable. They simply did not manage to find money at the right moment. A reserve is not a luxury, but a condition for survival. — Valeriy Chalyi, entrepreneur

5 practical steps for creating a financial cushion

1. Calculate your monthly burn rate (minimum living expenses).
   
   
2. Multiply it by 2–3 and put that amount into a separate account.
   
   
3. Automate reserve deductions — as soon as money comes in, set aside a portion immediately.
   
   
4. Keep your reserve in currency or highly liquid instruments.
   
   
5. Enter your reserve into a financial system (such as Finmap) to see the real picture, not the "illusion of money."
   
   

Reserves and liquidity are your insurance policy against bankruptcy. 

Insight 4. Distinguish between markup and margin and calculate the price of money

Many entrepreneurs confuse markup and margin. As a result, the business appears to be profitable, but in reality, money is disappearing. And when expensive credit is added to the mix, the business may be operating at zero or even at a loss.

The markup must be 300-400% for the business to survive. And the margin is what remains after all expenses. For example, if you sell a product for $30 with a cost price of $10, it seems that the margin is 200%. But after advertising, salaries, and operating expenses, only 16.6% may remain. And if the loan is expensive, the profit is completely eaten up. — Valeriy Chalyi, entrepreneur

What is the problem?

• Markups are often perceived as profit, and money that does not actually exist is spent.
• Loans at 24–60% per annum can eat away at even a good business.
• The owner does not see the real profitability because they do not keep management P&L.

Why is this dangerous?

• The business may grow in terms of turnover, but decline in terms of profit.
• If the margin is calculated incorrectly, entrepreneurs can easily find themselves in a cash flow crisis.
• Credit obligations turn growth into a trap: the company becomes a hostage to debt.

How to avoid this

1. Separate the markup and the margin. The markup shows how much you have added on top, while the margin shows what is actually left after all expenses.
   
   
2. Keep a P&L report. Without it, it is impossible to understand true profitability.
   
   
3. Calculate the cost of money. Before taking out a loan, see how much of your margin it will eat into.
   
   
4. Assess the transaction cycle. If you are returning the money in a month, a high percentage is still bearable. If it is a year, it is fatal.
   
   
5. Be honest with yourself. Consider only what remains "net" after everything as profit.

Table: Markup vs. Margin + Impact of Credit

Financial literacy is not about Excel. It's about survival. If you confuse markup and margin, or don't count the cost of money, your business may be killed not by the market and competitors, but by your own mistakes in calculations. — Valeriy Chalyi, entrepreneur

5 practical steps

1. For each product, calculate the cost price, markup, and margin.
   
   
2. Include all costs in the price: advertising, logistics, salaries, taxes.
   
   
3. Before taking out a new loan, check whether the margin is enough to cover the interest.
   
   
4. Use P&L in Finmap or another system to see the truth in the numbers.
   
   
5. Teach your team to distinguish between markup and margin — this is basic financial literacy.
   
   

Properly understanding the difference between markup, margin, and the price of money is like having a map and compass on a hike. Without them, you can walk for a long time, but you are likely to end up in a dead end.

Insight 5. Market Fit: why it is the entrepreneur, not the product, that determines the fate of the business

In business, it is customary to look for Product Market Fit — when the product and the market coincide. But Valeriy Chalyi's experience shows that this is not enough. A business can grow by hundreds of percent and then collapse in a year and a half, even with a strong team and a proven model.

I realized that there is such a thing as entrepreneur market fit — the relationship between you as an entrepreneur and the market you are entering. In Ukraine, I could launch anything because I had the contacts, understanding, and culture. In Portugal, however, that same knowledge did not work. — Valeriy Chalyi, entrepreneur

What is the danger?

Focusing solely on the product creates an illusion of control. You can:

• Find a niche with demand.
• Launch a strong product.
• Assemble a team and set up processes.

...and still lose hundreds of thousands of dollars. Why? Because the entrepreneur himself did not "fit" into the market, since he does not understand local rules, does not have the necessary partnerships, and does not see cultural barriers.

This is exactly what caused Valeriy to lose $1.3 million:

• From $17,500 in projected revenue → to $65,000 in 6 months.
• And after a year and a half — complete loss of business and money.

How can this be avoided?

You need to think beyond "will people buy my product?" You need to honestly assess yourself in the context of the market.

Product Market Fit vs. Entrepreneur Market Fit

Practical steps for entrepreneurs

1. Audit the market and yourself. Before you start, ask yourself: do I have the resources, network, and knowledge for this environment?
   
   
2. Adaptation. Invest in local connections, study the culture, work with local partners.
   
   
3. Combine the two fits. The product is in demand, and you, as the owner, have trust and authority in this market.
   
   
4. Check your finances regularly. Management accounting will show whether your Market Fit really works or whether the business is only profitable "on paper."

The scale of a business always equals the scale of the owner's thinking. If you don't fit the market, it will simply "eat you alive." — Valeriy Chalyi, entrepreneur

Insight 6. A business survives only when you love what you do

For most entrepreneurs, business starts with energy — the idea drives them, a team appears, and each new deal energizes them. But over time, this can turn into a "routine money farm." The entrepreneur begins to see the company only as a "money button." And that's the beginning of the end.

As soon as you start treating your business like a "money button," everyone feels it. The team feels it, and the business itself starts to fall apart. — Valeriy Chalyi, entrepreneur

What is the problem?

• The owner's burnout. The business loses its meaning, and energy is spent only on putting out fires.
• Team demotivation. People feel that the owner is working "without enthusiasm."
• Loss of strategic vision. Decisions are made solely to make money here and now.

Why is this dangerous?

A business without ideas and meaning cannot withstand a crisis. When problems arise (cash flow gaps, falling sales, competitors), the owner does not have the strength to fight. The result is rapid stagnation and loss of the company.

How can this be prevented?

1. Formulate the "why." Write down why your business exists (besides money). This is a benchmark for you and your team.
   
   
2. Set "game goals." Business is a game with levels. Set steps for 3-6 months: a new market, a new product line, increased margins.
   
   
3. Be present in the process. Don't just take profits, but also develop the product, team, and service.
   
   
4. Measure the energy of the business. Hold regular meetings with the team, listen to customers, and look at the quality of decisions.

"Passion for business" vs. "Money button"

The entrepreneur sets the energy. If he loves his business, the company grows. If he sees only money in it, the business dies. — Valeriy Chalyi, entrepreneur

Insight 7. Rapid growth can destroy a business

Rapid growth is every entrepreneur's dream. But in reality, it can be the biggest threat. When the numbers are flying high, it seems like everything is under control. However, rapid growth often hides weaknesses that explode a year later.

We took an account that brought in $17,500 and made $65,000 in six months. And then it seemed that we could do anything. A year and a half later, we lost both our business and our money — over $1.3 million. — Valeriy Chalyi, entrepreneur

What is the problem?

• The euphoria of growth. The owner feels an "omnipotence effect" and starts taking risks without analysis.
• Financial trap. More sales mean more inventory, expenses, and liabilities. If there is no reserve, growth will devour the business.
• Loss of focus. The entrepreneur launches new directions instead of stabilizing the main one.
• The team cannot keep up. Scaling overloads people and the management system.

Why is this dangerous?

Uncontrolled growth is not success, but a fast track to bankruptcy. When a company grows too fast:

• accounts payable and cash flow pressure increase;
• the owner starts counting "paper profits" instead of real money;
• any crisis (returns, supply disruptions, falling sales) becomes fatal.

How to prevent collapse during growth

1. Count, don't feel. Instead of "we are growing," measure real cash flow, liquidity, and liabilities.
   
   
2. Build up reserves. At least 2-3 months of fixed costs should remain untouched.
   
   
3. Stay focused. Don't open new areas until you have worked out and consolidated the previous one.
   
   
4. Control your margin. High turnover with low margins = the illusion of growth.
   
   
5. Regularly check your financial health. Cash flow, balance, and P&L should show the same picture.

Table: "Healthy Growth" vs. "Dangerous Growth"

We believed we were immortal. And that belief destroyed us. — Valeriy Chalyi, entrepreneur

5 steps to counteract dangerous growth

1. Every week, look at cash flow, not turnover.
   
   
2. Divide the money in your account: what is yours and what are your obligations.
   
   
3. Set aside at least 10-15% of your income as a reserve.
   
   
4. Before investing in a new direction, check it on P&L.
   
   
5. Regularly ask yourself, "What if sales drop by half tomorrow?"

Financial transparency is an entrepreneur's main superpower

Valeriy Chalyi's story is not about losing $1.3 million. It's about how even an experienced entrepreneur can make mistakes if they don't see the real financial picture. And most importantly, these mistakes can be corrected if the right conclusions are drawn.

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What does this case show?

• Business is not just about money. When the owner loses his love for the business and sees it only as a "money machine," the team and the business begin to fall apart.
  
  
• Rapid growth is more dangerous than stagnation. Without a financial control system, even explosive growth can lead to disaster.
  
  
• Cash is king. Only money in the account can be considered real. Everything else is an illusion.
  
  
• Reserves make a business resilient. A cushion of 2-3 months' expenses can save a company in a crisis.
  
  
• Financial literacy is a must. Understanding the difference between markup and margin, knowing how to calculate the cost of money and evaluate loans determines whether a business will survive or not.

Management accounting is not bureaucracy. It is a navigator that allows an entrepreneur to see the way forward rather than moving blindly. It allows you to see how much money you really have, how much you need to reserve, where cash is "leaking," which projects are profitable, and which ones only create the illusion of profitability.

Finance is insight. It is the ability to run a business with your eyes open. Without it, you are simply driving in the dark and hoping you don't crash. — Valeriy Chalyi, entrepreneur

If an entrepreneur makes finance the center of their attention, they gain three key advantages:

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1. Resilience — the business does not collapse at the first crisis or cash flow gap.
   
   
2. Speed — decisions are made based on numbers, not intuition.
   
   
3. Control — you understand where every hryvnia goes and how it affects your profits.
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Therefore, the main lesson is simple: you cannot leave control over your money to chance. You can rebuild your business, but you cannot get back lost time, nerves, and reputation.

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Financial accounting is about the future of your business, your freedom as an entrepreneur, and your confidence in tomorrow.

Frequently asked questions

1. If my business is growing, why is there less money in my account?

Because growth requires investment: in warehousing, production, marketing, and your team. Sales are increasing, but funds are "stuck" in inventory or accounts receivable. If you don't take this into account in advance, it's easy to end up with a cash flow gap.

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2. How much reserve capital should an entrepreneur have?

The minimum is a reserve equal to 2-3 months of the business's fixed costs. If your break-even point is $30,000, your reserve should be at least $60,000-90,000. This makes the business resilient and allows it to survive a crisis.

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3. Why is it important to distinguish between markup and margin?

Because margin shows real profit. Markup is simply an increase in price above cost. For example, a product costs $10 and sells for $30. Markup = 200%. But after expenses, only $5 may remain — that is, the margin is only 16.6%. Without proper calculation, it is easy to break even or operate at a loss.

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4. What reports are essential for a business?

Three basic reports:

• Cash flow — shows where the money is going.
• Balance sheet — shows what the business has at a given moment.
• P&L (profit and loss) — shows how profitable the company is.

Together, they provide a 360° picture and allow you to make decisions based on facts.

The money flow in gyms is usually intense: memberships, drop-in visits, personal training sessions, space rentals, sports nutrition sales — dozens of transactions every day.
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Now add trainer salaries, equipment costs, utilities, taxes, and repairs — and you’ve got a financial whirlpool where it’s easy to lose control.

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That’s exactly the kind of reality Smartass, a Kharkiv-based gym serving hundreds of clients daily, was operating in. But behind the scenes of this dynamic business, chaos was running the show:‍

‍There were gaps between the reports and reality. Cash was tracked separately. And that didn’t work for me at all — because I had zero visibility into the cash flow.
— Maksym, owner of Smartass Kharkiv

While the financial chaos was draining time and energy, the business couldn’t grow strategically. But everything changed when Maksym decided to systematize financial management, connected Finmap, and — together with a financial director — brought order to the numbers.

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In this article, you’ll learn:

• how a gym owner went from reporting chaos to complete financial transparency;
• how automation helped plan dividends and staff bonuses;
• which insights reshaped the financial approach — and what’s next for the business.

Keep reading — and you’ll see how a real-life case proves: finance can be simple, and running a business can be calm and predictable.

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Why Manual Financial Tracking Was Holding Smartass Back

Every day, Smartass generated dozens of financial transactions — but the owner only saw fragments of the full picture. Cash operated on its own terms: administrators reported inconsistently, sometimes with delays, sometimes with mistakes. Maksym received scattered numbers, tried to reconcile them manually, and often found discrepancies between reports and reality.

‍Some things were accounted for, some were duplicated, some weren’t tracked at all. Cash was calculated separately.
— Maksym, owner of Smartass Kharkiv

To find out how much cash was in the register, Maksym had to message administrators, wait for their replies, and manually calculate everything on a calculator. Instead of a clear system — endless clarifications and manual math. It consumed time, created constant stress, and made it impossible to plan the business’s growth.

‍I had to calculate everything manually once a week or month, trying to figure it all out somehow. It was extremely inconvenient. Especially considering we already had a tool for this — and just weren’t using it.
— Maksym, owner of Smartass Kharkiv

As a result, he couldn’t forecast dividends or plan major expenses in advance. The business was operating reactively — responding to situations instead of proactively managing them.

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Common Financial Challenges the Business Faced

What Triggered the Implementation of Finmap

Maksym admits that he had been unhappy with the financial situation for a long time — he just didn’t know who could fix it. The team was busy with their own tasks, and he didn’t have time to dive into the numbers himself. So the chaos dragged on for months — until the opportunity finally came to change everything.‍

‍When you offered to help fix it, I realized that in just a few months, we could turn it all around.
— Maksym, owner of Smartass Kharkiv

The key turning point was realizing that there was no need to search for someone responsible within the team or try to implement a system alone. There was a ready-to-use tool — and people who took over the process. This allowed the business to keep running while implementing changes in parallel, without placing extra burden on the owner or the team.

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The first step was introducing a structured approach to cash tracking. Now all transactions — from received payments to cash deposits — are recorded in the system automatically, instead of being manually collected through messages from administrators.

Next, the team set up regular weekly reporting calls. Once a week, Maksym gets a complete overview: what’s been done, what’s in progress, and which payments are scheduled. This eliminated the need for him to check numbers daily or micromanage the staff.

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Finmap began to be used to its full potential — not just for viewing balances, but also for forecasting expenses and income. Maksym received access rights to independently analyze the data and make changes when needed.

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Another important improvement was the proper distribution of large expenses. Now, when the club purchases expensive equipment or plans technical maintenance, those costs are spread out over several months. This helps avoid sudden financial “dips” in reporting and allows for more accurate planning of cash gaps.

‍We started allocating expenses properly. Now we can plan technical maintenance for the whole year — instead of taking a hit in one specific month.
— Maksym, owner of Smartass Kharkiv

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Triggers that Prompted Action

From Manual Calculations to a Structured System

Today, financial management at Smartass runs like a well-oiled machine. Maksym no longer spends evenings doing calculations or messaging administrators to find out how much cash is left at the front desk. All the information is in the system and updates in real time.

‍Now everything’s finally in order when it comes to managing cash. I see everything clearly in the system.
— Maksym, owner of Smartass Kharkiv

The process has become easy and predictable. Once a week, there’s a call to discuss what’s been done, which payments have been made, and what’s still planned. After that, the owner can calmly focus on growing the business — without worrying about daily control.

‍It’s really convenient for me because once a week we go over everything that needs to be discussed. I don’t have to remind anyone about anything.
— Maksym, owner of Smartass Kharkiv

Another major shift is the ability to forecast. Now Maksym can plan dividends, staff bonuses, salary increases, and large expenses in advance. The club stopped operating “after the fact” and started looking several months ahead.

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In addition, the owner became more engaged in the financials: he analyzes statistics, reviews performance metrics, and adjusts data himself. This helps him make informed decisions — and feel in control of the business.

How Finmap Transformed the Club’s Financial Processes

Insights for Entrepreneurs

Maksym’s experience revealed several key lessons that can benefit any business owner.

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First, he realized that the biggest problem isn’t the lack of money — it’s the lack of understanding where the money is going. When data is incomplete or chaotic, every decision becomes guesswork instead of a controlled process.

Secondly, he became convinced that automation relieves the lion’s share of operational burden. Now, instead of constant clarifications and manual calculations, the team follows a clear process — and Maksym receives all the summary information in a convenient format.

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Thirdly, he saw that financial management isn’t a luxury for large companies — it’s a basic necessity for any business with daily operations. Forecasting brings confidence and allows for strategic decisions, rather than constant firefighting.

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“The most valuable result is that I see the result,” — says Maksym, emphasizing that the true value of financial management lies in witnessing real changes, not just pretending to have control.

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What Financial Order Brings to Your Business

Business Planning and Scaling

For Maksym, implementing financial management was not the end point, but just a starting platform. Now that all the basic processes are in place, he is moving to the next stage — deep financial planning.

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What lies ahead is creating detailed budgets several months in advance, to forecast expenses and income, identify potential cash gaps, and avoid unpleasant surprises.

Now I can forecast the bonus system, pay rates, and salary increases with more confidence.
— Maksym, owner of Smartass Kharkiv

The club plans to optimize its bonus programs for staff, making them fairer and more transparent. This will not only help retain top trainers but also motivate the entire team to deliver results.

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Future plans also include scenario analysis: what happens if rent or equipment costs increase, how the situation changes with more clients. This will enable the business to be managed not just at the moment but with a clear long-term strategy.

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Action Plan for Further Business Growth

The implementation of systematic financial management became a true turning point for Smartass.

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The business no longer lives from one report to the next — it plans, forecasts, and looks confidently into the future.

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Maksym got rid of chaos, manual calculations, and endless clarifications within the team. Instead, he now has a transparent system that shows the real state of affairs, tells him when and how much can be spent or taken as dividends, and enables him to run the business — not just react to it.

Yes, of course I can recommend Finmap!
— Maksym, owner of Smartass Kharkiv

This case proves: financial management is not unnecessary bureaucracy, but the key to growth and business stability. It gives the owner a chance to free their mind from small details, focus on development, and finally feel in control of their business.

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If you recognized your own business in this story — it’s time to bring order to your finances. The sooner you see the full picture, the faster you’ll be able to make decisions that lead to profit and scaling.

Frequently Asked Questions

1. How do I know if my business needs financial management?
If you can’t see the full picture of your cash flow, reports don’t match reality, and you have to count the cash manually — it’s already a signal that it’s time to systematize your finances.

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2. How long does it take to implement financial management like in Smartass?
In Maksym’s case, the first results appeared within a few weeks, and full reporting order was established in a few months.‍

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3. Does the business owner have to manage Finmap personally?
No, the owner gets a transparent system and access rights to see the big picture. Routine tasks are handled by a financial manager or administrators.‍

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4. What if the business has a lot of cash transactions?
These businesses benefit the most: cash is automatically tracked in the system, and there’s no need to message employees or do manual calculations daily.‍

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5. Does financial management help with planning and forecasting?
Yes, that’s one of its main benefits. At Smartass, they now forecast expenses, plan dividends, and even structure the team’s bonus system months in advance.

An IT company is more than just code, clients, and products. It’s also a complex financial system: payments in dollars, expenses in pounds, salaries in euros. Freelancers from around the world, subscriptions, servers, services, marketing. And on top of that — taxes, cash flow, payroll, and financial management reports.

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As the company grows, the problems grow with it:

• clients pay in dollars, but the team gets paid in crypto;
• one project is profitable, another one is dragging the business down;
• there’s money in the account today — and a cash gap tomorrow. And no one understands why.

Financial management is your only tool for control, confidence, and growth.

It’s the only thing that answers the key questions:‍

• where the money goes;
• which direction is dragging the business down;
• when it’s time to scale — and when it’s better to hold the cash.

Let’s explore the real pain points IT companies face that drain their budgets — and the solutions that turn financial chaos into business growth.

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Project-Based Financial Management Is the Foundation of Control in IT

We work on a dozen projects at once. Some are client-based, others internal. The same developers might be involved in different projects — at different rates. Expenses are tracked manually or not at all. As a result, it’s impossible to tell what generates profit and what simply consumes team time and money.

Sounds familiar? In IT, this isn’t the exception — it’s the norm. For IT companies, project-based financial management shouldn’t be just a convenience — it must be the foundation of financial literacy.

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IT businesses often operate across multiple streams: web development, mobile apps, design, support, in-house products. And each of them is a separate project — or even dozens of smaller sub-projects.

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When financial management is done only at the company level — not per project — you simply can’t see which of them are actually profitable, and which are dragging you down.

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Without clear project analytics, you:

• can’t see which area generates 80% of your profit;
• can’t track where exactly the money goes — freelancers, contractors, or ads;
• can’t identify which projects are unprofitable and only drain your resources.

And most importantly — you make decisions without an objective financial picture.

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Project-based financial management gives you visibility into spending, control over budgets, and insight into profitability for each project or sub-project.
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It’s the key to timely and informed financial decisions.

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McKinsey research highlights the cost of poor project control:

‍Only 0.5% of IT projects are completed on time, within budget, and with the expected financial return.

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The same report presents striking numbers that show the consequences of lacking financial control:

• 59% of IT projects go over budget;
• 53% miss their deadlines;
• 56% deliver less profit than expected.

On average, if a project fails to meet even one of these parameters, costs increase by 75%, while profit drops by 39%.

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Can you quickly spot such projects in your business? And are you confident you can cover the losses with reserves or more profitable streams?

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That’s why project-based financial management shouldn’t live in a finance manager’s head or in spreadsheets — it must be part of a system that lets you see, analyze, and forecast everything in one place.

Project-Based Financial Management — the Finmap Way

In Finmap, projects are a dedicated layer of analytics for income, expenses, profit, and cash flow. You can:
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1. Create any number of projects and sub-projects (e.g. “CRM Development” → “Frontend”, “Backend”, “UI/UX”).
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2. See in real time how much each project earns, what it spends, and what its actual and planned profitability is.
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3. Compare performance across business streams and cut off unprofitable initiatives.
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4. Forecast results — just add potential future expenses, and you’ll instantly see how they affect the project’s profit.
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5. Delegate financial control of a project to a responsible manager by giving them access to only that project — without exposing the rest of the company’s data.

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This means you’re not just looking at numbers — you see the real financial picture of each project. And you can make decisions not based on intuition, but backed by real data.

Profit in One Currency, Losses in Another: Why Multicurrency Financial Management Is Critical

Income in dollars, expenses in euros, salaries in USDT, and reserves stored in crypto or pounds. This isn’t a hypothetical scenario — it’s the daily reality for most IT companies working with clients and teams across the globe.

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The result? Multiple parallel financial realities:

• everything looks fine in the UAH report, but the USD version shows losses;
• a profitable contract gets eaten up by exchange rate fluctuations;
• plans collapse due to a single miscalculated transfer or a delayed payment.

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Without multicurrency financial management, a company can’t see the true state of its finances.
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This is especially critical for businesses that:
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1. Work with clients in different countries (payments in USD, EUR, PLN, GBP);
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2. Pay teams and contractors in their local currencies;
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3. Hold accounts in several countries or use multi-currency cards and wallets.
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When there’s no multicurrency financial management — profit becomes relative and forecasts lose meaning:

• What looks profitable may be just an illusion — it all depends on which currency you’re calculating in.
• Exchange rate fluctuations can wipe out the margin you thought was stable.
• It’s hard to plan cash flow when every transaction requires conversion and cross-checking against the central bank or interbank exchange rates.

Practical Solutions for Multicurrency Financial Management in an IT Company

Error-Free Multicurrency Management: How It Works in Finmap

If you’re managing multicurrency operations in spreadsheets — that means constant manual work, a high risk of errors, and distorted analytics. We recommend choosing a system that automatically pulls in exchange rates, matches transactions, and generates up-to-date financial reports on its own.

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In Finmap, for example, multicurrency isn’t a standalone feature — it’s built into the core logic of the entire system.

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You сan:

• Manage finances in any currency — across accounts, projects, transactions, and reports.
• Set a base currency to view the full financial picture — for example, see everything in USD, even if some expenses are in EUR or PLN.
• Enter exchange rates manually, pull them automatically from the central bank, or use the actual rate from the transaction.
• Track exchange rate differences in operations — and calculate their impact on profit or reserves.
• Manage not only fiat accounts, but also crypto wallets — for example, keep reserves in USDT, BTC, or ETH and see them reflected in your overall financial picture.

When your business operates across multiple countries and currencies, precision in financial management becomes critical. And it’s accurate multicurrency tracking that allows you to analyze cash flow in a complete and meaningful way.

Hidden Costs — A Test of Your Company’s Financial Maturity

In the IT business, the team is the biggest expense — and at the same time one of the least transparent.

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Core team, freelancers, agencies, support staff, plus temporary tech consultants, designers, or managers. They may all be working on different projects — but in your records, it’s just a line called “Payroll expenses.”

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The result? A project might appear profitable — until you realize the team spent 120 hours on it, paid by three different contractors in three different currencies.

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And then there are the costs that completely fall off the radar:

• subscriptions to services no one uses anymore (but are still billed monthly);
• one-time bonuses, branded merch, gifts, informal team expenses;
• corporate parties, celebrations, spontaneous business trips, coffee machines, certificates, and more.

‍WIRED reports:

‍Around 50% of software licenses in IT companies remain unused, and another 8% are used less than once a month. This creates hidden costs and reduces overall profitability.

Now imagine — how many other overlooked details are silently eating away at your profit?

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To avoid losing profit on the little things, it’s worth checking the main risk areas.
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Use this checklist with control questions to uncover what usually remains hidden.

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Checklist: How to Detect Hidden Costs in an IT Company

If, after going through the checklist, you’ve spotted potential “leakage points” — don’t ignore them.
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Solving most of these issues starts with reliable financial management.

How to Bring Order to Your Finances with Finmap

Finmap was built exactly for situations like these — when expenses are scattered, some are hidden, and financial decisions are made on intuition.

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Instead of chaos in Excel or banking apps, you get a single system that consolidates all your data: transactions, contractors, subscriptions, compensations, fines, cash flow, budgets, and analytics.

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How to Organize Your Company’s Finances in 7 Steps

What an IT company gains by following these recommendations:

• Clear understanding of the current financial state — how much money is available right now, in which currencies, and in which accounts.
• Full control over all expenses — even those that previously “slipped through” (subscriptions, cash, services without integrations, bonuses, etc.).
• Transparency across projects and clients — see which areas are profitable and which are just draining resources.
• Automation of routine processes — less manual input, more time for analysis.
• Team involvement in financial management — expenses are recorded quickly and on time, not “recalled at the end of the month.”
• Ability to react quickly to financial risks — thanks to reports and analytics, the company spots trends before a cash gap occurs.
• Readiness for scaling — financial management adapts to team growth, the number of projects, and currency complexity.

Try going through these steps yourself — and you’ll see how quickly “leakage points” show up, even in a well-organized business.

Finmap Client Case: SITNIKS CRM

SITNIKS CRM is a Ukrainian SaaS company that develops CRM solutions for online stores and marketplaces.

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The team was growing rapidly, expanding into new markets, and building out a product line. But scaling required resources — and without external investment, it became impossible.

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SITNIKS CRM had no problem shaping a clear vision for growth, setting strategic goals, and building a product roadmap.
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But financial management remained unresolved: Excel spreadsheets didn’t provide a complete picture, and a manually compiled P&L didn’t meet investor requirements. That’s why financial order and strategy became a critical part of preparing for fundraising.

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Research shows that:

75% of investors don’t consider business plans without a clear financial forecast. Companies with structured financial management and strategy gain a significant advantage when applying for investment.
— Data from Investopedia

How SITNIKS moved from Excel and chaotic spreadsheets to a transparent financial system that helped attract investment — read in the full case study.

Results of Implementing Finmap

After adopting Finmap, the SITNIKS CRM team for the first time gained a clear financial view of the business broken down by products, teams, and periods.

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Based on this data, the company built a financial model that became the foundation of its investor presentation.

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For the first time, they had clear answers to key questions: What the real profitability is? How much funding is needed for growth? How long the business can operate without additional capital injections?

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And it was this preparation that helped secure the first round of investment.

Survival or Scaling — Financial Management Decides

The faster your IT business grows, the more expensive financial mistakes become. A missed subscription, an unprofitable project, a sudden cash gap — none of these are about luck, they’re about management.

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‍Finmap helps bring order to your money, build systematic financial management, and make decisions based on real numbers. That’s how those who plan not just to survive, but to scale, operate.

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Want to see how this would look for your company?

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Try Finmap in action — and see the finances of your IT business in a whole new way.

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No confusion, just numbers, clarity, and a solid financial foundation for action.

Frequently Asked Questions

1. How can I tell which project is profitable and which one is dragging the business down?
Implement project-based financial management: allocate expenses (salaries, freelancers, marketing) to each project or client. Analyze profit by stream, not just overall revenue. This allows you to focus on efficient projects and cut the unprofitable ones.

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2. How do I manage cash flow when income and expenses are in different currencies?
You need a centralized system that records all transactions both in their original currency and in the company’s base currency (e.g., USD or EUR). The exchange rate must be fixed at the time of the transaction — this way you can realistically assess profitability.

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3. How do I track project financial results and the impact of changes on profitability?
Record not only actual but also planned income and expenses for each project. This allows you to create a budget, track variances, and model scenarios — for example, how increased costs or delayed payments would affect results. Such an approach lets you make decisions before losses even appear.

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4. How can I identify where the business is silently losing money?
Conduct an audit of hidden costs: auto-payments from old subscriptions, unapproved team expenses, forgotten freelancers, fines, discounts, staff turnover. Even isolated cases can add up and eat away at profits. Regular expense reviews are a simple way to return money to the business.

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5. How do I build management reporting if I don’t have a CFO?
Start with the basics: P&L (profit and loss), Cash Flow (money movement), and account balances. Update them regularly — weekly or monthly. Even a simple Excel file or automated template will help you make informed decisions instead of relying on intuition.

What do you rely on when it’s time to make a financial decision?
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For the accountant, it’s tax regulations. For the workshop manager — technical cards, the production schedule, the manufacturing plan. But what about you, the owner? An Excel file with no update date? A message from a supplier in your messenger? A negative bank balance?

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In manufacturing, money moves daily: prepayments to suppliers, employee advances, countless small expenses, payments to contractors, raw material purchases, rent, loans… And without a system, all of this turns into financial chaos.

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Let’s break down the key financial problems manufacturing companies face — and show how Finmap helps bring order to the numbers, reduce chaos, and make confident decisions.

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How to Bring Manufacturing Finances Into a Single System

In manufacturing, financial data accumulates across dozens of sources: bank accounts, CRMs with orders, Excel sheets with production line plans, inventory management, accounting. Often this is topped off by the personal cards of owners or managers.

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As a result, the picture is fragmented: to understand the real state of affairs, you have to manually reconcile inventory balances, supplier orders, client payments, and production costs.

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Why this is risky for the business:

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1. Loss of control over working capital — at any moment, you may discover that there's less money in the account than expected.
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2. Risk of cash gaps — raw material purchases and overhead costs are paid before payments from clients come in.
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3. Cost calculation errors — due to incomplete data, it's hard to assess the real profitability of orders or production lines.
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4. Financial chaos between departments — procurement, sales, and production all keep separate records, so the owner sees no single source of financial truth.
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5. Lost time for the owner — instead of growing the business, you’re stuck reconciling spreadsheets and checking balances manually.

All Accounts Under Control — From Bank to Warehouse

The first step toward financial transparency is consolidating all company accounts into a single system. In Finmap, you can add:

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1. ‍Bank accounts, sole proprietorships, cash registers, and cards — and see their balances in real time. Use integrations with banks and payment systems to automate data collection, and import statements to streamline work with banks that don’t integrate.
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2. Petty cash and advance payments — to account for money temporarily held by employees. Add subordinates to the system and set flexible access rights to understand how each department or workshop is handling funds.
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3. Virtual warehouse account — which shows the value of goods or raw materials on hand in monetary terms. Track the movement of goods by value and deduct the cost of materials that were actually consumed.

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Thanks to this, you immediately see how much money is available right now, where it’s stored, and how much is “frozen” in inventory. Balances update automatically and regularly, and you can reconcile all figures in seconds — from any device, anywhere in the world.

Connect Systems That Influence Your Money — and Gain Full Transparency

To get a complete financial picture, it’s not enough to just see account balances — you also need to understand what financial processes are happening across the business. In Finmap, this can be done through the open API.

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You can connect the following to Finmap:

• ‍CRM system — so deals automatically sync with your financial records.
• ‍Inventory management system — to track purchases, raw material write-offs, and see their impact on cash flow.
• ‍Accounting, document management, or other services — if you need visibility into additional business processes.

You can set up the integration yourself or use Finmap’s in-house integration specialist, who will adapt the system to your business structure.

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As a result, you get a unified system that brings together everything that affects your finances: sales, expenses, warehouse balances, settlements. At the center — Finmap, as the single source of financial truth.

Control Over Settlements With Clients and Suppliers

In manufacturing, money rarely moves in sync. You've already paid for raw materials, logistics, salaries — and the client will pay in 15–30 days, or even later. All of this creates cash gaps: money seems to be in circulation, but your accounts are empty.

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At the same time, managing settlements is difficult. Some clients delay payment, others ask for deferments. Suppliers demand prepayment and enforce strict deadlines.

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Without systematic tracking, it's easy to miss a debt, confuse payment dates, or lose credibility with partners. ‍

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Here’s what that leads to:

• You don’t know who owes you and how much — instead of a clear debtor list, you search through messages or spreadsheets.
• You might miss a payment deadline and lose a supplier — because obligations fall out of sight without a unified payment calendar.
• Contractors call before you remember the invoice — damaging your reputation and complicating future cooperation.
• You can’t see when to expect incoming payments or how to plan outgoing ones — it’s all based on guesswork instead of numbers.
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To avoid falling into the trap of cash gaps and losing control over settlements, you should focus on three essential steps. Here’s what to implement — and how it’s done in Finmap:

Why Should You Calculate DSO?

DSO answers a simple but critical question: How many days after a sale do you actually receive the money in your account?

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The higher your DSO, the greater the pressure on liquidity and working capital.

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According to Kaplan Group research:

42% of companies have a DSO over 46 days — and among large manufacturing firms, that number is as high as 70%.

When this indicator stretches out, it's not just “paper debt” — it’s real money you can’t use for buying raw materials, paying salaries, or growing the business.

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DSO benchmarks for different types of production:

If you control your DSO — you control your liquidity. If not — you’re operating in debt, even if you show a profit on paper.

What Actually Drives Profit in Manufacturing

In manufacturing companies, it’s often difficult to determine which specific products, orders, or business lines are truly profitable.

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The reason — lack of detailed tracking by financial responsibility centers or projects.

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Frequently, both direct and indirect costs (purchases, wages, logistics, rent) are accumulated in a general production account without being allocated to specific product types or customer orders.

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As a result:‍

• Loss-making products are “hidden” among profitable ones, distorting the financial picture.
• Budget is spent on unprofitable areas that don’t generate margin.
• Management decisions are made based on intuition, not analytics.

This is a systemic issue that erodes profitability — even when the company is growing in production or sales volume.

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According to McKinsey:‍

About 40% of executives reduce their product portfolios to lower complexity and increase overall profitability.

Such decisions cannot be made based on gut feeling — they require solid data.

How Finmap Helps Organize Effective Project-Based Management

That’s exactly what the Projects report in Finmap provides. You see each direction — along with its components (subprojects) — as a separate financial unit: income, expenses, cost of goods sold, operating profit, and profitability.

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A “project” doesn’t have to be just a business line. In your company, it could be:

• ‍A specific type of product — for example, production of kitchen furniture, children’s beds, or metal structures.
• ‍A batch for a specific client — a custom order with its own budget, timeline, and expenses.
• ‍Pilot production of a new product — to assess the economic feasibility of scaling it into mass production.
• ‍A contract or tender — such as supplying products to a government buyer.
• ‍Outsourced production — when your company manufactures goods for other brands.
• ‍A specific workshop or production line — to evaluate the efficiency of different departments.
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The importance of project-based management isn’t just a theory. Research from ScienceDirect confirms how unevenly different products contribute to a company’s profitability:

On average, only about 20% of a manufacturing company’s products generate more than 150% of its total profit. This means the remaining 80% either barely break even — or are actually loss-making.

Can you confidently name which of your products generate the most profit?

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Financially strong manufacturing isn’t about total revenue — it’s about analytics that clarify what should be scaled and what should be cut.

From Chaos in Excel to Structured Management: The Case of Practik

PRACTIK is a Ukrainian producer of innovative food for dogs and cats, positioning its product as a complete meal — not just pet feed. To ensure high-quality standards, the company built two factories from scratch in Ukraine — allowing full control over every stage of production.

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The company manufactures products in two main directions: food for cats and food for dogs. Each direction has its own product lines, which are constantly updated and improved.

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Before implementing Finmap, the company tried to manage its finances in Excel. But as the business grew and revenue sources multiplied, the spreadsheets could no longer keep up — automation became impossible, and gaining a full financial picture was out of reach.

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However, it wasn’t just about automation. The company had deeper reasons to move toward systematic financial management:

• ‍Cash flow couldn’t be tracked manually — income from different directions merged into a single flow without breakdowns.
• ‍No centralized analytics for decision-making — expenses weren’t recorded in one system.
• ‍Uncertainty about balances and investment funds — forecasting available resources was difficult.
• ‍Multiple business lines, but no unified system — real estate rental, investments, and B2C sales all needed a single financial interface.
• ‍Need for delegation — finances were handled solely by a co-owner, which limited growth

Once the company decided to implement structured financial management, they turned to Finmap’s financial manager. He helped build the right structure and configure key processes — tailored to the specific needs of their business.

Control and financial management were then delegated to an internal specialist, Natalia, who is now responsible for the company’s finances and shares her experience working with Finmap:

Once we started seeing all income and expenses in one place, it became much easier to make decisions. Now we understand how much money is available, where overspending occurs, and how prices change month to month.

What Changed After Switching to Finmap

After switching to Finmap, the company gained not just a convenient tool — but a complete financial management system. ‍

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Here’s what changed in practice:

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1. Practik gained full control over its finances. All income and expenses are now in one system, with transparent analytics and clear balances.
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2. Management can now see how much money is available for investment, where overspending happens, and how purchase prices are changing — enabling decisions based on numbers, not guesses.
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3. Financial processes became structured: the team reviews reports monthly, analyzes expenses, and plans the budget based on real-time trends.
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4. Cash gaps are no longer a surprise — only expected and prepared for. Delegating financial management allowed the owners to focus on scaling the business.

With Finmap, we’re putting order not only into our numbers, but into the entire business. It gives us confidence, stability, and the ability to move forward. —  the Practik team summarizes

Finmap — A Tool for Control, Confidence, and Growth

Financial management is the answer to daily questions: Can we make this purchase today? Will we have enough cash for payroll? Which product line should we scale, and which one should we shut down?

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In manufacturing, these decisions are costly. And mistakes don’t happen due to lack of experience — but due to lack of data.

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Finmap helps consolidate all your financial information into one system, see the real-time picture, build forecasts, and avoid critical errors. That’s why it’s chosen by manufacturers who want to grow — not blindly, but systematically.

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Book a free consultation with a Finmap expert — and see how it works for your business.

Frequently Asked Questions

1. Why switch from Excel if it works?
Excel doesn’t provide a current picture — data gets outdated quickly, it’s hard to consolidate reports from different sources, and there’s no automation. It works up to a certain scale, but then starts slowing growth.
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2. How do I know how much money can be invested vs. kept for operational costs?
You need a system that shows available balances and upcoming obligations. This allows you to make informed investment decisions without risking missed payments.
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3. Our raw material prices are constantly changing. How can we track when and why costs are rising?
Regularly recording expenses in a structured format lets you see purchasing trends and respond to changes in time.
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4. How do I identify where money is being lost if sales are stable but profit isn’t growing?
You need records that show expenses by category and business line. This will help identify overspending, hidden costs, or inefficient processes.
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5. Can financial management be delegated if we don’t have a CFO?
Yes — the key is setting up a proper accounting structure. From there, it can be managed by a responsible person: an accountant, office manager, or administrator. The business owner will receive reports in a clear and convenient format.