Small business owners are many things: dreamers, visionaries and creative problem solvers, just to name a few. Where others might walk away at the first sign of discomfort, small business owners go all in, willing to suffer now so they can prosper in the future. One aspect of running a business that many business owners aren’t comfortable with is financial management. Accounting responsibilities, such as coordinating payroll and preparing taxes, are rarely enjoyable. Nonetheless, they must be done—and done correctly. You likely already know that revenue is the lifeblood of any business, but even more important is knowing how that cash flows in and out of your business.
This lesson isn’t lost on Patricia Tsai, who worked as a certified public accountant (CPA) before opening ChocoVivo, her Culver City, California-based retail/wholesale chocolate business. As she explains below, knowing how to read her business’ numbers set the stage for ChocoVivo’s future growth and success. Her biggest piece of advice? Get a bookkeeper. Hiring a bookkeeper early on can help you gauge your business’ health, which can in turn help you plan projections for its growth.
As Patricia learned, the smart way to scale your business relies on always knowing where you stand with the numbers. Being able to accurately manage your books can help you create accurate forecasts, which can help you better navigate your business to success. To make sure you don’t fall behind on your books, consider hiring a qualified CPA and/or utilize the proper accounting software so that you can personally stay on top of your finances. When you decide to tackle your business’ numbers head-on, especially with the proper help and tools, you’re not just working for your numbers; you’re making them work for you.