3 Pain Points in Business Finances and How to Overcome Them
Written by Aqleema Anwar
Business finances can easily be summed up as the money that you make from your business and the money that you spend for your business. But business finances and the stress that oftentimes comes with it, extends beyond the cash flow movement of funds from buyer to seller. Many entrepreneurs struggle with their business finances and the three main pain points are around mindset, managing their finances and building a business finance team. And these don’t just apply to new business owners; seasoned entrepreneurs also experience some if not all three of these struggles. Here’s a deeper look at each one of them.
Mindset:
Mindset may not have anything directly to do with money in a tangible sense, but it has everything to do with it in the mental and emotional sense. Do you think you can run a 6-figure business? If the idea alone terrifies you, you’re not operating out of a mindset that aligns with the money, success and business you truly want to create. If talking about or looking at your business finances makes you sick to your stomach, you’re not living out of the identity of a CEO of a profitable business. In order to live at a level of expansion, you have to expand the limits of your identity. Only then will you begin to show up differently and be empowered when it comes to your business finances.
Managing Your Business Finances
How much is in your business spending account right now? Without having to look it up or go searching through crumbled up receipts and bank statements would you be able to answer in under a couple of minutes? You should be able to give an answer pretty close to the actual amount.
Why? Because being up on business finances isn’t just a job for my bookkeeper or accountant.
How else are you going to know if you can invest in a new system or if that last launch was successful if you don’t regularly check in with your business books. That’s why it’s important to set up what your “Business Money Date”. It’s dedicated time for you to review how your business is doing and understand what is helping and what is hindering the growth of your business. And if facing that reality is too scary, you need to re-read the part about mindset and figure out what limiting beliefs are blocking you from facing this task head on. When you create systems and structures around your business finances, you’re able to make abundant financial decisions and grow an abundant business + bank account!
Building Your Business Finance Team
Not every entrepreneur is also a financial expert so it’s understandable that managing business finances would seem overwhelming, confusing and a chore. But that’s no reason to push this part of your business to the side. We’ve discussed mindset, we’ve discussed understanding your business finances and spending and now it’s time to talk about ways you can be supported in running your business. Support can look like hiring a bookkeeper, an accountant and a money coach.
A bookkeeper pulls together all of your business transactions and creates your business financial systems each month. There are some great software options that will help you do this yourself as well. If you decide to hire a bookkeeper, remember to still be consistent with your business money dates because having support doesn’t mean that you stop caring about how your business is doing; it’s what a CEO would do.
An accountant will provide you with tax strategies and advice. They are also experts in preparing tax returns and should always be consulted when making decisions on how to maximize tax savings. It’s highly recommended that your accountant is a CPA (Chartered Professional Accountant) to ensure you are receiving the best level of support and advice.
A money coach is going to support you with creating the day-to-day financial structures in your business. Money coaches provide you with the financial knowledge to run your business and grow your profits. They can also help when looking to add a bookkeeper or accountant to your team and give insight on the type of questions and conversations you should be having with your business finance team.
Aqleema Anwar is a content writer and online business manager based in Toronto. She is dedicated to sharing compelling human interest stories and is passionate about supporting female entrepreneurs in their business endeavors and content creation. In her spare time, she enjoys cooking and listening to true crime podcasts. Follow her on Instagram @ask.aqleema
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