393: What Not Knowing Your Numbers Is Costing Your Business Whether You Are Starting A Business Or Side Hustle, A Solopreneur, Entrepreneur, Mompreneur, Freelancer, Accountant, Bookkeeper, Owner
- Apr 22
- 8 min read
393: What Not Knowing Your Numbers Is Costing Your Business Whether You Are Starting A Business Or Side Hustle, A Solopreneur, Entrepreneur, Mompreneur, Freelancer, Accountant, Bookkeeper, Virtual Assistant, Business Owner, Or Self-Employed
Financial literacy is just as important when you are taking care of your personal finances as it is when you own a small business. April is financial literacy month and since this podcast is all about Mastering Your Small Business Finances, it is only fitting that we should talk about how financial literacy makes an impact on your small business. Studies are showing that the financial literacy scores are slowly and steadily declining. I understand you became a business owner because of the passion you have for what your business is all about and not necessarily about the finance aspect, but I know you want to do everything you can to ensure your business is as successful as possible, which includes understanding your finances. Financial literacy might not come easy to you, but if you make it a priority, especially if you are new to owning a small business, it will help you manage the financial side of your business more effectively. Increasing your financial literacy will help you make smart business decisions such as when to hire an employee and when or if you should take out a loan as well as how to manage your debt. You will be able to understand the taxes that are relevant to your business and how every action you take impacts your financial statements. Listen in today as I talk about why financial literacy is so important and how you as an entrepreneur, small business owner, virtual online bookkeeper, or virtual assistant can increase your financial literacy…
Join us in a community built specifically for accountants and high-stress professionals. You’ll receive support, accountability, and a community that understands what you’re going through. We focus on stress reduction, increasing productivity, time management, goal achievement, health, happiness, and desired lifestyle:
Schedule your Complimentary Stress Audit And Clarity Session, where we’ll work together to create a clear and focused plan and overcome the obstacles that stand in your way so that you can move forward and immediately start enjoying your life with less stress, increased productivity, and more time to spend doing what you love with the people you care about:
Accountants, CPAs, Bookkeepers, Tax Preparers & Financial Professionals, sign up here to get updates on upcoming opportunities & grab the Audit Of Your Well-Being & Balance Guide here:
Ready to set up your business? I have a program to help you get your business set up so that you can start making money. Sign up for this program here:
Are you ready to try coaching? Schedule an Introductory Coaching Session today. You’ll have the opportunity to see how you like coaching with an Introductory Coaching Session:
Join us in the Mastering Your Small Business Finances PROFIT LAB if you are ready to take control of your business finances and create the profitable business you are striving for. Are you ready to generate revenues and increase the profit in your business:
If You Are Ready To Choose, Start Or Grow Your Side Hustle, Get Your Free Checklist And Assessment Here:
Grab Your FREE guide: 5 Essential Strategies For Stress-Free Bookkeeping:
Your FREE Online Virtual Bookkeeping Business Starter Guide & Success Path Is Waiting For You:
Join Our Facebook Community: https://www.facebook.com/groups/womenbusinessownersultimatediybookkeepingboutique
The Strategic Bookkeeping Academy, including Bookkeeping Basics, is open for registration! You can learn more and sign up here:
Looking for a payroll solution for your business? You can get an exclusive 15% discount on your payroll services when you sign up here:
QuickBooks Online - Save 30% Your First 6 Months:
Sign up for a virtual coffee chat to see if starting a Bookkeeping Business is right for you:
Show Notes:
Financial literacy is just as important when you are taking care of your personal finances as it is when you own a small business. April is financial literacy month and since this podcast is all about Mastering Your Small Business Finances, it is only fitting that we should talk about how financial literacy makes an impact on your small business. Studies are showing that the financial literacy scores are slowly and steadily declining. I understand you became a business owner because of the passion you have for what your business is all about and not necessarily about the finance aspect, but I know you want to do everything you can to ensure your business is as successful as possible, which includes understanding your finances. Financial literacy might not come easy to you, but if you make it a priority, especially if you are new to owning a small business, it will help you manage the financial side of your business more effectively. Increasing your financial literacy will help you make smart business decisions such as when to hire an employee and when or if you should take out a loan as well as how to manage your debt. You will be able to understand the taxes that are relevant to your business and how every action you take impacts your financial statements. Listen in today as I talk about why financial literacy is so important and how you as an entrepreneur, small business owner, virtual online bookkeeper, or virtual assistant can increase your financial literacy…
Welcome Back…When you own a small business, more than likely it is going to be you, the business owner who provides the skills and financial knowledge to run your business. You will be the one to create your budget, do your accounting and set your sales prices. You will bring everything you know from your personal finances into your business. Being financially literate can help you manage your small business effectively and elevate your decision making and leadership skills.
So, what is financial literacy? Financial literacy is the ability to understand and effectively use various financial skills including personal financial management, budgeting and investing.
When you are financially literate and can apply these skills to your business you are better equipped to understand your financial statements and can see the impact your actions make in the financial health of your business.
Understanding your financial statements helps you make smart business decisions, and by increasing your financial literacy you will be able to consider how certain decisions will impact your financial statements before you even make those decisions. These decisions could be whether to hire an employee or when and if you should take out a loan for your business. No matter which actions you take, you will want to know how these decisions are affecting your profitability.
Financial literacy can be broken down by many different aspects in your small business. Let’s take for instance taxes. Your small business may be subject to different taxes, but you want to be familiar with and understand the taxes that affect your small business. Do you have payroll taxes, self-employment taxes or sales taxes? How is your business entity taxed? Does it get taxed at the corporate level or does the income pass through to your personal return? Not only will it be important to understand your small business taxes, but equally important you will want to understand the due dates of these taxes as well.
If you’re an accountant or high-stress professional, you want to start enjoying your life more, both at work and at home. You’ve likely built a successful career, but at what cost? The problem is you’re so buried in deadlines and to-do lists, there’s no time or energy left for the things that really matter. You’re great at managing clients, deadlines, and numbers, but your own stress, time, and well-being, well, they always seem to come last. The constant pressure leads to burnout, guilt, and feeling like no matter how much you do, it’s never enough. I see this all the time. As a CPA with over 20 years of experience and a Certified Coach, I’ve helped high-achieving professionals like you go from stress and burnout to a more integrated and balanced lifestyle using The RE*INVENTION™ Process. This process helps you reduce stress, reclaim your time, and finally build a healthier, happier, more balanced lifestyle without sacrificing your success. The truth is, stress doesn’t go away on its own, and eventually, the cost isn’t just exhaustion; it’s your health, your relationships, and your love for the work you once enjoyed. If you’re ready to build a life you don’t need a vacation from, it’s easy to get started. First, schedule your Complimentary Stress Audit & Clarity Session, where in just one session, I’ll help you pinpoint what’s really draining your time and energy, create a personalized action plan to help you simplify your life, reclaim your time, and increase your productivity so that you start living with more energy, focus, and freedom. You don’t have to keep doing this alone. I can help you customize a plan to stop the overwhelm and start enjoying your life again. Go to www.FinancialAdventure.com, click on the Work With Me button, and book your free session today. Let this be the moment you stop just surviving and start living with more control and finally enjoy a more integrated and balanced lifestyle again. In the meantime, check out all the other resources and solutions on my website that you can immediately apply to your life so you can stop being stressed out and feeling like you're never doing enough, and instead breathe a sigh of relief at the end of the day, knowing you've accomplished enough and can enjoy your life more.
Another area of financial literacy that will be important to your small business is how your cash flow impacts your business. You will want to make sure you understand when and how your business receives income as well as when your bills and other expenses are due. These are two ways financial literacy relates to your business, and having adequate financial knowledge about them and many other areas within your business can contribute to the success of your small business.
So, now that you know how important financial literacy is to your business, you might be asking how you can build your financial literacy? First, you need to make it a priority. Jump at the chance whenever you have an opportunity to learn more about financial literacy and how it impacts your business. This could be taking a basic accounting course, attending a webinar, training or reading a book or article. Another way is to take advantage of lessons you can learn each day in your own business. Such as making sure your bookkeeping and financial statements are up to date. Look over your financial statements each month and keep a pulse on your cash flow. Next, when you are talking to your accountant or bookkeeper, make sure you ask them questions so that you understand what they are saying. There could be times when an accountant or bookkeeper assumes you understand what they are saying. Don’t be afraid to spend some time with them and ask questions. A good accountant or bookkeeper will help clarify what they are saying in terms you are able to understand. You’ll be amazed at how much you can learn from them. When you have a small business, it’s easy to use your financial information to help you become financial literate. Don’t make increasing your financial literacy too difficult, find a way you learn that you actually enjoy. Yes, you can actually enjoy increasing your financial literacy…you are doing it right now by listening to this podcast.
And, you know I’m going to ask…what’s at least one thing you will take away from this episode that will help your business succeed and grow your bottom line? If you want accountability or support, visit www.FinancialAdventure.com. You’ll find links to join our private Facebook community, connect with me on LinkedIn, and discover more free resources to help you reduce stress, boost productivity, and build a business and life you truly enjoy. I’ll see you there.
Comments