Ep. 17 - Fun with Finance

How can this be? If you are saying to yourself, “I just let my accountant take care of it,” then this episode is definitely for you. In a business one of the last things most owners want to deal with is the financial statements. Numbers are not how most of us think and we want to just go out and do. However, even if you have an accountant or bookkeeper to take care of all that, as the business owner, you need to have a solid understanding of the financial statements. You don’t have to be an expert but you need to understand how each piece of the financial statements relate to each part of your business. When you do that, you will be able to make much better business decisions. The challenge is that financial statements are boring. We get it so we’re going to try to make this episode as fun as humanly possible. 

Key Takeaways

• Going to attempt to teach my wife about financial statements. This should be fun. 

• You don’t need to be an expert, just know what questions to ask

• Bad things happen if the business owner doesn’t pay attention to the financials

• Identify areas to increase profit other than increasing sales and decreasing cost

• Understand the relationship that each area of the financial statement reflects each area of business

• Multiple reasons your profit margins are too low