Do you have fears around knowing your numbers? Why do you think you have those feelings of dread?
If you do, don’t worry. You’re not alone – those feelings are super common with business owners.
But there’s good news! You can overcome those feelings with a change in your mindset that will help you understand your numbers, make good business decisions and help you build a healthy relationship with your finances.
Some of the most common reasons that business owners fear their numbers are that they…
- Don’t know or understand them entirely
- They see the business isn’t making money so it’s easier to ignore them
- They don’t want to share their information with a bookkeeper or accountant for fear of being judged
- You’re terrified you’re doing all the wrong things
I want to tell you WHY knowing your numbers is so important.
I always say this – you don’t know what you don’t know, and that applies to your books and finances. When you don’t have a solid understanding of where you’re at financially, what money is coming in and going out, then you can’t possibly be making the best choices possible for your business.
Think about it like this. You wouldn’t sign off on providing a new product or service without crossing all the Ts and dotting all your Is and knowing all there is to know…so what makes your books any different?
I’ll give you a couple of examples of my clients who didn’t know their numbers or understand them, and therefore unable to make good decisions.
I had a client who, when I started working with her and her husband, told me they only made $50,000 in sales that year.
When we went through her numbers and really broke them down, she was shocked to discover that her husband had actually made well over $400,000 in sales that year.
That’s not to say she made that much in profit, but they were making WAY more than they initially thought because they didn’t understand the numbers.
I had another client who was making over $330,000 in sales each year but had no money in the bank. I had to show her where the money was going and why her business account was sitting empty. She was making money alright, and spending it too, just not keeping track of it.
So how do you change the fear mindset, beat the overwhelm and get your books handled?
Well, first and foremost, it’s time to admit you need to take control of your books and that you need some help. Since you’re already reading this post, you’ve figured this out, so you’re on the right track.
- Start by breaking your tasks down into bite-sized chunks. By breaking your tasks down into small chunks, there’s way less of a chance of you getting overwhelmed, and you can celebrate your little wins each time you complete something.
- Set time aside regularly to wear the CEO/CFO hat and look at your numbers. By carving out time in your schedule, there are no excuses for not doing the work and you hold yourself accountable.
- Finally, reward yourself when you’re finished for a job well done! Whether it’s a glass of wine, an episode of your favorite show or a sweet treat, you’ve earned it.
Also…don’t be too hard on yourself. It’s okay to be afraid, make mistakes, but it’s important to admit you might need help rather than just keep on keepin’ on. You’ll get there.
Alright, I’ve talked enough. Are you ready to overcome your fear and start taking control of your books? I’m willing to bet you are, but probably still want a little help.
I got you.
I want to invite you now to download the monthly bookkeeping spreadsheet. It will help you get on track, stay organized and wrap your head around your books. It’s time to change your mindset when it comes to your numbers, bid your number fears adieu and set yourself up for success.
Nice article, I wasn’t aware of many tips mentioned in this article. Appreciate the amount of hard work that you put in to creating this amazing article. Thanks for the info!
Heather Pranitis says
You are very welcome! Glad the article was helpful.