You don’t have to love numbers….but you should understand them
As a business owner – you have an obligation – part of that obligation is understanding what your numbers tell you. You need to understand cash flow to pay your suppliers and the ATO. Ignorance is not an excuse.
I know what you are thinking….it is that harsh Stacey again throwing around her comments about numbers and ATO – blah blah blah. Well yes – it is me.
As soon as you decide to be a business owner (or insert whatever title you like here – entrepreneur, solopreneur, mumpreneur, sole trader, company director, CEO, managing director) – you have obligations. Not just to yourself – but to external parties.
So as soon as you apply for an ABN you are entering a new sphere – a new world – a world where being blissfully ignorant of your obligations is simply not an excuse for anything.
Now most of my clients come to me and their first words to me are…
“Stacey I hate numbers…I mean I really hate them. They scare me and to be honest even meeting with you is far outside my comfort zone…but I know I need to do it.”
Well – bloody well done for stepping outside your comfort zone. I know it is not easy to do things that you don’t like, or things that are not your strength – but isn’t it worth facing those fears, banishing them to the bush and being a proud business owner who understands their numbers (just even if it is a teeny tiny bit) so that you can make informed decisions and be on top of your cash flow.
Imagine knowing exactly what cash you are expecting this month to come in, then imagine knowing exactly what cash you need to spend to the ATO or superannuation or suppliers…..so then you would know (all be it roughly) what cash position you are in for the month – IN ADVANCE.
“That is the power of starting to understand your numbers – you can predict your cash position, you can predict in advance if you will be in cash crisis and you can take action early on to prevent any disasters.”
Now I don’t know about you, but I don’t like surprises. And if someone could predict in advance of your business hitting potential disaster – wouldn’t you want to know sooner rather than later?
Or if someone could help you put into place systems and procedures so that any cash flow disaster doesn’t happen – well even better.