Do you know your business numbers? Studies have shown that women are more likely to be involved in the decision process, yes even in their own business, when they understand what's going on financially. Geraldine Carter is here to talk about what you need to know when it comes to your business finances.
Geraldine is a business coach for CPAs who aren't the master of running their own businesses. She explains what level of financial knowledge you should have when you start your own business… and you might be surprised to learn that so long as you have a second-grade education, you have all the arithmetic knowledge you'll need.
Start with tracking your business transactions on a spreadsheet just so you have a general idea of how much your business is making and spending. Geraldine insists on the importance of having a separate business banking account as well. Your business and personal finances should be treated as the completely separate entities that they are.
Geraldine explains the differences between a bookkeeper, accountant, and CPA and when you should invest in each of their services. She explains how many businesses are losing money or have easily accessible funds they're not even aware they have. A big problem might come down to how many friends and family discounts you give out; friends that are paying below your usual rate. You might find that your friends and family discount actually has a positive role in your business… but if it doesn't, it might be time to raise the rates.
Having a system and standard operating procedures in place will help you streamline your time. If you have a dedicated day to do your own bookkeeping, know exactly what processes you need to follow and automate as much as you can.
There's no beating around the bush: You need to understand your business finances, at least at some level, in order to succeed. It's the people who know the numbers that make the decisions. And if you outsource, but have no concept of what's actually going on, you could be leaving your business open for financial discrepancies and problems down the line.
How is your relationship with math? Do you have a separate business account? Have you started thinking about outsourcing your business finances?
In This Episode:
- How you should start tracking your transactions when you're first in business
- Why you need to have a business bank account and treat your finances as a completely separate entity
- When you should invest in a bookkeeper
- What the difference between a bookkeeper, accountant, and CPA is
- What role a 'friends and family' discount has in your business
- How implementing systems can help you streamline your time
- Why it's so vitally important to understand your business finances
"You don't have to do the math, the calculator does the math for you. You just have to look at the numbers. There's no arithmetic in your business that you didn't' learn after second grade." ([8:37])
"Ideal clients are typically people who are paying you what you're worth, which is your full rate." ([19:03])
"It's the people who know the numbers and the money who are in the positions to be making the decisions. When you don't know the numbers and you don't know the money, you tend to not have as much sway when it comes to making important decisions." ([23:43])
Are you a female millennial entrepreneur who wants to start or scale your service-based business but not sure where to start? Go to http://www.drcortneybaker.com/10-secrets to get your free copy of the 10 Secrets Female Millennial Entrepreneurs must know before launching their service-based business. Get your free copy now!
About Dr. Cortney Baker… She is an award-winning entrepreneur, researcher, author, speaker, and an advocate for gender equality. As a leadership expert and mother of three, she is passionate about inspiring and empowering women to lead with greatness.
Dr. Baker is the author of the best-selling books: The Ten Do's and Don'ts for Business Leadership: Lessons to Lead Effectively and Unlimited: Conquering the Myth of the Glass Ceiling. She is passionate about helping ambitious female millennial entrepreneurs go from side-hustle to CEOs!
Feedback? Questions? Comments? For more information or to reserve Dr. Cortney Baker to speak at an upcoming event, please contact her at: [email protected] or 1-469-708-8840.