*#3 of 7 post series for Global Entrepreneurship Week.

I heard a great quote, “It takes more than a quarterly meeting with your accountant to keep your business open.”

Making the financial numbers in your business work for you – understanding the real numbers in your business, not just those that are shown in your annual financial statements for the tax office – means knowing your numbers within your balance sheet as much as your profit statement and understanding how they impact your cashflow.

Whew! That was a statement!

But seriously, as entrepreneurs, we have a tendency to avoid the numbers. We’d rather focus on the fun bits like making sales, creating marketing content, ordering/creating new products and services. The reality is, without knowing how much is coming in, how much is going out and the cycles throughout the year, your business just might have to close its doors due to lack of funds.

Some tips to manage your business’s financial health:

1. Pay attention to your cashflow. If you’re spending more than you make, you won’t be in business for very long. Make a list of your non-negotiable expenses such as rent, insurance, payroll, overhead, web hosting, url renewals – you get the idea. Also take a look at your optional expenses that if they were to discontinue, it would still be business as usual. Knowing your numbers will also give you an indication of inefficiencies or something nefarious like mismanaged funds.

2. Have a budget and stick to it. Budgeting is important because you control your spending, track your expenses, and save/make more money. Additionally, having a budget can help you make better financial business decisions, prepare for the unexpected, reduce debt, and stay focused on your goals.

3. Keep personal and business finances separate. For some, this is an obvious tip but I am consistently having conversations with entrepreneurs that pay for family groceries from their business account (“I’ll put the money back in …”) or have a sub-account for their business under their personal account or worse, deposit a company cheque into their personal account. (“It all goes to the same place…”) EEK! If your business and personal finances are separate, you could run into big trouble at tax time. Here’s a resource article for you https://www.plooto.com/blog/why-it-is-important-to-separate-personal-and-business-finances

Taking the time to review the numbers and understanding what the numbers mean and the impact that they can have on your overall profit will allow you to make informed decisions when it comes to your business.

If you’re not sure, need help or have questions, send me an email. I have some great resources and people that can help.

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Now Go Get  Connected!

An award-winning Leader, Entrepreneur and Business Development Consultant, Cathy teaches entrepreneurs how to increase their influence; build their business and stay sane while doing it. She helps you to let go of limiting beliefs to “Stand Up, Stand Out & Step Forward” for business success. Named one of the Top Ten Mentors by StartUp Canada, Cathy is recognized across the country for her expertise on “All Things Small Biz”. She is the Founder of The Connected Woman Association, is a Director on the Board of WeBC (formerly the Women’s Enterprise Centre), author of numerous books and articles specifically the internationally known “Daily Espressos- Your Read it and Delete it Kickstart to Your Day”, and is a networking maven. (whew!)

For information on upcoming workshops, business coaching or to engage Cathy as a Keynote speaker at your next event, visit www.cathykuzel.com