Financial Management Intro

The most recent session of our Business Mastery Program kicks off Module 6 on Financial Management. Here is what we touched on from my notes during our workshop:

• Why people love money but don’t want to learn about financial management
• The difference between how wealthy people buy multi-million dollars homes and how first time home buyers but their first home
• When to pay all cash for a commercial property – and when not to
• The difference between buying a $5k camera to start a photography business and buying a $3k camera
• The “Language of Business”, who speaks it, and how you can, too
• How to find a good bookkeeper
• What learning accounting has to do with traveling to France or Italy
• What 3 years of financials can say about your business – that you can’t
• What it means when, for example, you’re spending “too much” on employees
• How cash businesses can’t hide their profits no matter how they try
• The key concepts, key documents, and resources you’ll want in your business
• The differences between an accountant, bookkeeper, wealth advisor, and CFO
• How to differentiate between a “financial accountant” vs a “managerial accountant” – and when/why you need each
• Why money is NOT “the root of all evil” … except when it is
• The impact of debt on cash FLOW and when negative profits can be okay
• Cash vs. Accrual Accounting – which is simpler, and when to use one vs the other
• How raising prices can lead to MORE customers – and when to do so
• Which financial documents cover a period of time vs. a snapshot in time and when to use each
• Profit & Loss Statement (P&L) statements, Balance Sheets, Cash Management, and Budgets
• When to break down reports by year vs. quarter vs. month vs. DAY
• Your profit planning tool to take a goal plan and put it into financial terms
• Your “Business Financial Operating Model”
• How to create “future planned” P&Ls
• What represents the VALUE of your business ownership
• How to figure out owner benefits like salary, benefits, and the business sale valuation
• How to design your business to sell WHEN you want to sell
• What to do TODAY to build a saleable business – vs a glorified job
• When to build a business to sell it
• How to choose between Quickbooks, Quickbooks Online, and Xero
• When – and why – to use a Payroll Service
• How do you protect yourself from a bookkeeper going rogue on you. (They have access to your accounts!)
• How to set your salary as a business owner (Next session!)
• Why bookkeepers suggest owners take a draw and not a salary – and why that’s likely a terrible idea for your business

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