You really should save that. What am I talking about? Money, your business's money more specifically. Saving money is important even (especially) for your business. You should save for two things: taxes and emergencies.

Taxes. Most experts recommend putting aside 25% of your gross profits for taxes. Remember this formula:
     Total Revenue
     - Total Expenses 
     = Gross Profit
Take your Gross Profit number and multiply it by 25%. Set this amount aside for taxes. I recommend a separate savings account so you won't be tempted to use it throughout the year. Use the money to pay tax estimates and any other tax due in April. If you have money left in the account after that give yourself a bonus by transferring all remaining money to your personal account!

Bonus Tip: hire a CPA to customize your tax savings plan and thus save you a lot of time and stress.

Emergencies. The other savings you should have is for emergencies and unforeseen events. Eventually your computer is going to give out or your camera become outdated. Don't wait until these things happen to save or worse yet put it on a credit card you cannot pay off! Use a business savings account to provide a buffer when emergencies arise, clients cancel, or you equipment needs updating. The amount to save will differ from business to business, but I recommend 3-6 months of typical business expenses. For example, if your expenses in a typical month are $500, you should have a business savings of $1,500-$3,000. You may also choose to save additional money if you know a large expense is coming in the near future (like attending a conference or purchasing a course).

Do you save money for your business? ​

Did you know that your business needs a budget? Yes, just like you need a budget for your personal finances you need one for your business. Managing money is essential if you want to succeed in your business. Part of being successful at this is having a monthly budget.

Yes, I know you're a creative and this is overwhelming. But stay with me. I'll make this quick and painless. 
 
​The goal of a budget is to make the most of the resources you have in order to reach your business goals (and probably some personal ones too!). A budget is simply telling your money where to go instead of wondering where it went. 

Here are three steps to start your business budget:

1. Determine your revenue (income before expenses). It is important to do this first because you cannot spend money without first knowing how much money you have to spend. It might help you to be specific in this area so you can see the services (or products) that bring in the income. For example, if you are a website designer you can list specific revenue sources, such as website templates and custom work. For photographers, you may you can use categories like wedding photography, portrait photography, and print sales.
2. Write down your fixed expenses. Certain expenses are always the same no matter how many clients you serve. Write these predictable expenses first as they are the easiest to figure out. Examples: Internet, website hosting, cell phone, business insurance, bookkeeping, accounting.
3. Calculate your variable expenses. These will be harder to figure out because they fluctuate month-to-month and depend on the number of clients you serve. The key here is to make an educated guess and adjust later as necessary. Examples: stock photography, office supplies, advertising, continuing eduction, travel.

Now set up your budget like this: