– by Sheila C. Henn, CPA, CA –
As professional accountants, we help many women in business and their financial backgrounds vary. We would suggest woman in business take control of their finances, spend time in preparation and to understand your financial health and find the right professional to work with, so you can focus your time on the success of your business.
Take control of your finances. As a business owner, time is valuable and is often stretched in many directions. To make decisions on where to spend your time within your business you should continually review what products or services are successful and whether your business as a whole is making money. You can do this by having your finances up-to-date and monitoring them on a regular basis. Monthly review is generally adequate with a more in-depth annual evaluation, but your financial records should be available at any given time.
Prepare in advance. Organizing your information ahead of your fiscal year-end will allow for more frequent monitoring but also will save time and costs in the long run. Professionals, such as accountants, want to spend their time where it is best served. Ongoing assistance is often more beneficial than a one-time meeting. Preparing ahead of deadlines allows you the opportunity to make improvements, save time and money at year-end and also spend time understanding the results.
Gain a basic understanding of your finances. Some women in business have a financial background while others are creative and do not always understand the financial side of their business. Every business owner should gain enough knowledge to keep themselves informed about their financial responsibilities and their current financial health. There are community courses available or online tutorials but sometimes it is just a matter of asking the questions and continually expanding your knowledge.
Find the right professional. Many professionals and their areas of business overlap. A professional will know their strengths and their limits and will assist you with yours. Lawyers, accountants, financial advisors and other professionals all work together as do other businesses. Taking the time to find the right professional to work with you and your business will save time down the road. Finding the right fit with a professional is much like finding the right employee. It can take time but is key to a working relationship.
Successful business owners generally know how to ask for assistance while staying informed and connected with their business. Ongoing monitoring of your business and its strengths and weaknesses can be challenging but can also be rewarding. Building relationships with professionals helps you to be successful by allowing you to monitor and understand the financial health of your business.
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