Financial Reports for Everyone!

Welcome to my small business finance and bookkeeping blog!

My goal is to share at least one bit of information that will contribute to your business reaching its full potential.

Early during my professional career in finance, I was requested to make my first financial presentation. I spent hours perfecting my slides, practicing my talk track, and committing numerous figures to memory. With much anticipation (and a bit of anxiety), the meeting day finally arrived. The scene I’m about describe is without the slightest bit of embellishment (mostly). When we arrived to my part of the meeting agenda, it was as if a volcano blast instantly sapped every bit of oxygen from the room! I was bombarded with completely unsolicited views of tonsils and dental work as the dreaded “yawns of boredom” dashed from person to person in the conference room. I hadn’t even spoken a single word yet!

Why are business critical topics of finance and accounting met with such disinterested responses from even seasoned business owners? Per an Intuit survey, only 46% of small business owners were confident in their understanding of financial management prior to beginning their business. This implies that over half of business owners are probably still uncomfortable with this critical component of their business.

Of course, it’s not necessary that every business owner become an expert in finance and accounting. Neither is it necessary to become a medical doctor to maintain good health. However, there are basic principles which should be understood by everyone which include drinking clean water, eating a balanced diet, participating in regular exercise and having proper rest. Ignoring any of these, even for a single day, has consequences like fatigue and irritability. Consistently ignore these principles over time, and the consequences become more serious and perhaps even chronic. Likewise, all business owners should understand certain basic finance and accounting principles, and how to effectively use them. When used properly on a daily basis, their usefulness for decision making and risk mitigation will become clearer to you.

Next time we will discuss some of the foundational concepts that will be useful as you learn how to Love Your Business Financials.

Author’s Note: All of my blog posts are written by me