This one small thing will destroy your bottom line
I am sick and tired of the accounting sector not going that one step further for us.
When we engage an accountant to help us manage the financial side of our business, we rightly have some expectations around how they will support us.
We expect they’ll help us manage our money, manage our cash flow, and manage the day to day finances in our business.
And I’m sorry to say, that is a false expectation.
Accountants do NOT do that.
Accountants do not support you with your cash flow management.
If you're lucky, they will support you with planning your taxes, but most of them don't, unless you ask. And I feel like this is a big thing where accountants could actually make more money for their business.
It seems so glaringly obvious to me - and something I believe accounting practices could be adding more business lines and income into their P&Ls but they don’t and it’s their loss - but I digress and here’s what I see and I’m so fired up about:
Too many of us are relying on our accountants to give us advice, and they don’t and we wait too long to engage the right people.
I see it time and time again in the work I do with my private clients in Rent-A-Ceo, and it's really sad because most people do not know the basics of cash flow management, but knowing your numbers is 101 of good business management.
Right now in Australia, our tax debt is the highest it’s ever been. And it's because people don't know how to manage their cash flow.
They don't know how to manage their money.
They don't understand how much they make.
They don’t understand their bottomline.
So let me ask you this: when you make one dollar, do you know how much you get to keep in your pocket?
And whilst it seems super basic and something everyone knows, I'm starting to see so many people in a rut, stuck in a corner, unable to move forward in their business or life.
In some cases, I’m talking, debilitating anxiety, absolutely crazy stress because they just don't know the basics.
And this is where I can really help business owners because I’ve been there and back and bought the damn t-shirt.
I have some more questions for you, but before I get into those, I have this little nugget to share and it’s kind of crazy-making…
Over the past 12 months, several accountants have told me that around 98% of their clients in small to medium businesses have tax debts that they don't know how to move forward with or don't know how to get out of.
As a business owner, this is a really scary place to be and what makes me furious is that these accountants have just kind of chuckled and thought it was funny.
Like, it's so not funny. Accountants, you should be helping your clients!
I’m bewildered by the fact that there is literally nothing out there that is supporting small business owners with information and support around this topic.
Thing is, during the good times there's so much money that we don't even notice that we're f*****.
Until we are and it’s too late.
Here are some questions that I put out to my community through social media and I want to add them here, if you feel comfortable to share your answers below great! But if you want to reach out with your answers (and potentially get some help in this area) click here.
If you were tasked to do a cash flow management projection for your business (or someone else's) would you know how to do it?
Do you know how much you keep out of her $1 you make?
Do you know how to read a P&L report?
Do you know how to read a balance sheet?
Do you know how to review the tax returns your accountant does for you?
If you’re in business, or running someone else’s business and you don’t know the answers to some or all of these questions, you are not alone.
So many businesses have the potential but lack the understanding to read their financials, which ends up destroying them.
And this is why I created the Female Financial Literacy Library >> it’s packed with all the information you need to feel confident to understand your numbers and grow your business.
Because a pretty marketing campaign, rad photos and all the glorious customer testimonials in the world WILL NOT change anything if you don’t know how to manage your business finances from ALL angles.
So many budding entrepreneurs focus on building their marketing chops BEFORE the financial work begins but this couldn't be further from what’s actually required.
I’m not saying you don’t need to think about your marketing or business development activities. But just to say that none of these things should be decided upon until the numbers are thoroughly understood and carefully forecasted and managed.
Your new mantra is: the numbers inform my strategy moving forward.
The foundations of a solid business are all about management and forecasting; if you have no clue on what to do or any desire to learn this aspect of business, I’m sorry to say you should hang up the towel NOW because you’ll be spinning your wheels forever.
When times are good, we don’t notice what we don’t know because the surplus still comes to us. But imagine how much more you’d have if you planned and managed it properly!
I am MASSIVELY passionate about this topic if you haven't noticed lol and it’s because I see so many people hurting when they really don’t need to be.
Remember, it's not how much you make, it’s how much you keep (which is a result of managing your money in the right manner).
I know many businesses turning over multi millions that have nothing to show for it because of exactly this.
For years I had to kiss many frogs (aka mentors and coaches) and lose lots of money, to learn what I know today about building wealth.
When I started this journey, as an 18 year old pup, there were many books written by men - but nothing came close to the level of detail, support and honesty you’ll find inside the Female Financial Literacy Library.
You could keep paying thousands to consult with the big dogs, or you can join my community of experts who will educate you and support you to fasttrack your wealth and investment journey.
This is the resource I wish I had to help shortcut my path all those years ago.
Explore everything the FFLL has to offer here >>
Coco xo
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