Project M.O.S.T.: Financial Management for Small Businesses and Nonprofits
Every successful organization—whether it’s a scrappy startup, a growing nonprofit, or a neighborhood business—needs a solid handle on its money. But many entrepreneurs and nonprofit founders find themselves stuck when it comes to budgeting, bookkeeping, and financial planning. That’s why the first workshop in Black Tech Link’s Project MOST Financial Management series focused on the basics of building and maintaining healthy financial systems.
Led by Black Tech Link Executive Director Elizabeth Cotton, this session guided participants through simple but essential financial tools and principles that can transform how small organizations manage their money. Whether you’re operating from your kitchen table or leasing an office space, this workshop was designed to help you build confidence and clarity around financial decision-making.
The Reality of Entrepreneurial Finances
Elizabeth opened the workshop with a reality check: Many small business owners and nonprofit leaders go into their work without fully understanding the financial side. Some are artists or creatives who love their craft but avoid spreadsheets. Others are community leaders who feel more comfortable fundraising than reconciling bank statements.
The result? Missed opportunities, mismanaged cash flow, and sometimes a total fear of even looking at the numbers.
But as Elizabeth emphasized, financial management isn’t just for accountants. It’s for anyone who wants their business or nonprofit to survive—and thrive.
Start with the Basics: Income, Expenses, and Cash Flow
The first step to getting organized is simply knowing what’s coming in and what’s going out. That starts with tracking:
Income: Sales, donations, grants, sponsorships
Expenses: Rent, supplies, software, staffing, travel
Cash flow: When money arrives and when it leaves
Even if you’re not ready for complex software, tools like Excel or Google Sheets can help you start tracking. Elizabeth shared a simple income and expense tracker template to help participants visualize their financial activity.
For organizations just starting out, she recommended reviewing finances at least once a month—and always making time to plan ahead.
Choose a System That Fits You
Not all financial systems are created equal. The right tool depends on your size, goals, and comfort level.
Some of the tools recommended during the session included:
Google Sheets or Excel for early-stage tracking
QuickBooks Online for growing organizations that need robust reporting and automation
Wave for freelancers and very small businesses (free and user-friendly)
No matter which system you choose, the goal is to build a habit of consistency. Your system should make it easier—not harder—to understand your financial picture.
Categorizing Your Money
Elizabeth stressed the importance of categorizing income and expenses properly. Vague entries like “miscellaneous” don’t help you plan. Instead, get specific:
Instead of “supplies,” use “marketing materials” or “event signage”
Instead of “income,” break it down into “retail sales,” “grant income,” or “membership fees”
This level of detail allows for better forecasting and helps funders or investors see where your revenue is really coming from. It also helps you prepare more accurate tax documents.
Understand the Difference Between Budgeting and Bookkeeping
Budgeting is about looking forward—planning how you’ll spend money before you earn it. Bookkeeping is about looking back—tracking what you’ve already earned and spent. Both are necessary.
Elizabeth encouraged attendees to build an annual budget that outlines their revenue goals and expenses month-by-month. Then, they can use that budget as a benchmark when reviewing actual numbers.
This is especially important for nonprofits, who often need to show funders that their spending matches their stated goals.
Budgeting is about looking forward—planning how you’ll spend money before you earn it. Bookkeeping is about looking back—tracking what you’ve already earned and spent. Both are necessary.
Elizabeth encouraged attendees to build an annual budget that outlines their revenue goals and expenses month-by-month. Then, they can use that budget as a benchmark when reviewing actual numbers.
This is especially important for nonprofits, who often need to show funders that their spending matches their stated goals.
Set Up Good Financial Habits Early
Some financial practices that Elizabeth recommended include:
Open a separate business bank account: Mixing personal and business funds can get messy fast
Save for taxes: Set aside 25–30% of your income for taxes if you’re self-employed
Reconcile monthly: Make sure your bank records match your expense tracking system
Keep receipts: Digitally scan or store proof of major expenses
Track grant or restricted funds separately: For nonprofits, this is crucial for accountability and compliance
The Power of Planning
Beyond tracking, Elizabeth talked about the importance of forecasting. Knowing when your biggest bills are due—and when your slow seasons hit—helps you prepare. She introduced the concept of a rolling 12-month forecast that can be updated quarterly.
This is especially helpful when applying for loans, building grant budgets, or planning for major events. It also helps ensure that your organization doesn’t run into cash flow problems that could have been avoided.
Asking for Help
Finally, Elizabeth encouraged participants not to be afraid to ask for help. Whether it’s a bookkeeper, a mentor, or a QuickBooks tutorial on YouTube, financial education is a journey.
She shared examples of entrepreneurs who overcame fear of numbers and turned their finances around simply by learning the basics, asking questions, and dedicating one hour a week to financial maintenance.
Final Takeaways
This first workshop in the Financial Management series wasn’t just about balance sheets and budgets. It was about empowerment.
Elizabeth reminded attendees that understanding your finances is an act of leadership. It helps you make smarter decisions, build trust with your supporters, and stay in control of your mission.
If you’re just getting started, begin by:
Tracking income and expenses weekly
Categorizing everything clearly
Reviewing your finances monthly
Creating a simple budget for the next 3 months
More workshops are on the way in this Project MOST series, each one building on the last to create a solid foundation for success.
Whether you run a small business, a nonprofit, or a side hustle, your money tells a story. Make sure it’s one you’re proud of.
Want to Join the Movement?
If you’re a small business or nonprofit looking to grow, modernize, and get connected to real opportunity—Black Tech Link is here for you.
➡️ Visit blacktechlink.org
📌 Click on the Small Business Mastery Program
🗓️ Book a free session by hitting Talk With an Expert
Your mission deserves to thrive. Let’s make that happen—together.