Do you ever feel like the reports you get from your bookkeeper are confusing and overwhelming?
Are you uncomfortable asking what it means, because you think you “should” know this stuff?
Do you ever wonder why the amount of profit they said you made, never quite seems to match what is in your bank account?
Here is a little secret: It’s not supposed to match.
I won’t go into the long & boring details here, but just know that the standard reports you get from your bookkeeper or CPA are designed to meet a standard that has nothing to do with how you run your business.
The good news is that, you don’t need to understand accounting or anything that the Milton business accountant or bookkeeper does to be financially in control of your business.
However, a mistake I see many entrepreneurs make, is they hire someone to handle the books and think “phew, my money is taken care of” and then hand over the reins. And then they get confused by the reports that make no sense to them, and really start to feel disempowered around money.
While I agree you shouldn’t be dealing with the record keeping of the business, and you certainly don’t need to understand anything about accounting, you should never let go of the financial responsibility. After all it’s your money. And that is the key to creating the life you desire.
Your financial professional’s role is to simply record and report the money flow, they may even advise you on actions you can take, like helping you choose the best online direct loan lenders, but you need to control it. You make the decisions, not them. You will get the best idea through this Finance Blog.
But since they don’t know your business the way you know it, you need to help them to help you, by letting them know what information it is you need, how you need to see it and when you need to see it.
They actually really want to provide this information for you! And if they don’t, you need to fire them, and find someone who does.
But I don’t know what I’m supposed to do, so how can I tell them?
Staying in control of your cash flow often has less to do with managing your money as it does managing the activities that involve money.
Nobody knows the activities in your business better than you. So, take some time to identify the key activities in your business, and then ask your bookkeeper or CPA to provide you with information each month on how each of those key activities are impacting how much cash you generate or spend in your business.
For example in my business, if I take clients to lunch, or buy them gifts, or send out couriers, etc it doesn’t help me make decisions to see the total I spend in a year in my business on lunches, gifts, or couriers, etc. What helps me is to see how much cost I incur per client, so that I know if my pricing is right, or if I am doing too much for them.
This is just one example, and perhaps to someone else, they need different information. The important thing to remember is that only you know what information you need to help you make decisions.
Information broken down and presented to you this way can be game changing in how you make decisions and run your business.
The result? You will start to make and keep more money!
Nafissa Shireen
With 25 years' experience leading 6-figure to 9-figure companies, she strategically partners with entrepreneurs to help them focus on sustainable & scalable business growth, so they can create a highly profitable and luxurious business and life.
Passionate about helping women earn what they are worth and build their wealth, so that they can realize all of their dreams and desires. She brings together her vast business knowledge with the deep inner work needed to help entrepreneurs identify blocks, step out of fear and overwhelm, raise their wealth consciousness, and move forward towards their goals with measurable, tangible results.
She is a featured Expert and regular contributing author for Today’s Innovative Woman Magazine, and is profiled in Canada’s 2014/2015 Distinctive Women Magazine
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