Most business owners are lousy at finance. The brutal fact is finance isn’t your first love. You just want it to work and not scare the heck out of you. The good news is, you are in good company.
Finance brings up a range of emotions, from fear to frustration and everything in between. Because money-centric emotions are the kind you tend to avoid, it becomes easy to settle for a second-rate financial foundation. In the short run, it is simpler to focus on the things you like to do, like selling and innovating, than it is to troubleshoot your finances. Watch out, this will catch up with you when you least expect it.
When I speak with business owners these are some of the things I hear:
- I hired the best person I knew, and I hope it is ok, but I don’t know
- No, I don’t look at my financials, just my net income, sales and cash
- If I am honest, I worry about what I don’t know, but most of the time I don’t have time to think about it
- I know that if I have a solid financial tool box, I’d make better decisions, avoid roadblocks and find more opportunities but how do I get there?
How do you know what you don’t know? Where do you start to build confidence in your financial systems? How do you assess your current financial system, so you know where improvement is needed?
At Mackey Advisors, we have a tool to help you answer those questions. It is our Financial Factors Scorecard. ™ It is user friendly, and you don’t have to become an accountant gain insights from it. The tool let’s you easily and quickly assess where your business is in 8 of the most important areas of Finance:
- Income Tax Management
- Internal Controls
- Financial Statements
- Cash Flow
- Budget & Forecast
- Financial Transparency and Buy-in
- Financial Analysis
- Owner Satisfaction