Its scary the amount of new business’s I come in to contact with who honestly have no idea of how much money they are making, haven’t they heard cashflow is king!
They have a diary in which they write down their takings, or a quick spreadsheet which lists ‘some’ figures.
If you mention the scary words of ‘break even figure’ they just stare blankly at you.
Ok so lets just forget its a business we are running – do you look after your own accounts like that and constantly pay charges to the bank? Ok so some might – its at this point I would scream out for them to get immediate help if they wish to be in business for any length of time – but for those that do know whats happening in their personal accounts, why do you not know whats happening in your business?
Its not difficult – there is a myriad of online accounts software, both free and paid for that helps you do the most basic of of accounts. You can run off reports each week and check, you can even get your bank account to automatically feed in to it, thus giving you totally up to date figures.
But if you are really not that interested or are scared, you have some options – get a bookkeeper to do it for you, or take a course and find out how it all works.
End of the day, its your business, your life, you need to assert control over what is happening, money in and out, so yes cashflow is king.
End of rant!!