Apparently everyone has a book in them and this is mine! It is called BRIGHT BUSINESS MONEY.
I have felt for a long time that there needs to be an easy to read and practical guide for small business owners to help them to understand and manage their businesses better from a financial standpoint. So my book is an attempt to fill this gap.
It does not just cover how to understand your profit and loss and balance sheet (although of course this is included and I have tried to explain terminology as simply as possible) but also all the other financial aspects of running a successful business.
So, we have sections on business planning and forecasting, pricing, debt collection, and getting third party finance. The final sections are on getting the key information, which will help you make the best decisions and get the best results.
The paperback version of the book is available on Amazon and there are Kindle and I pad versions for those who want to go down the electronic route.
If you run a business and the finances leave you baffled perhaps my book would be a good starting point.
Many owners/managers of small businesses (and larger ones for that matter) struggle to understand their business finances. This lack of understanding can make it very difficult for them to make the right decisions for their business.
Now, I am sure my accounting colleagues would not mind me saying that, most accountants make lousy entrepreneurs. We just lack the creativity and drive which makes entrepreneurs so effective at getting new business ideas off the ground.
So why should entrepreneurs/business owners be great accountants?
Each role requires an entirely different skill set and way of working and, indeed, a different personality type (if you are familiar with DISC profiling). So don’t be shy about admitting that you are stuggeling with the money side of your business.
Many business owners do not seek the proper help and guidance, or have the right level of financial information, to help them make decision. To me this is a huge mistake which can lead directly to business failure. As a responsible business owner/entrepreneur you do not need to be a trained accountant but you do need to have enough knowledge of financial issues to run your business effectively.
So what do you need to do to get this knowledge? Well, for starters:
- Ask lots of questions of your accountant about why the figures are as they are.
- If you only receive figures from your accountant once a year, several months after the year has finished, this is not enough! You need to have regularly updated financial information to make decisions on a timely manner.
- Have a properly thought through profit and loss and cash flow forecast so you can manage your cash – and make sure it is regularly updated for what has actually happened.
- Don’t just be happy with knowing how much you have sold in total and the margin on this total figure. Ask how you can get information on individual customers, products and projects so you are clear which activities are profitable – and which not.
It is not good enough these days to just shrug and say “Well, I am just not good with figures”. You started your business to make a living for yourself, and any staff you have, and you owe it to yourself, and them, to have a good handle on the money in your business.
To help I have written “your guide to understanding business finances” which can be downloaded for free from my website www.fionabevanfinancialmanagment.co.uk