In Show 125 – Fast Fix Monday – Understanding Your Financials originally broadcast on Facebook Live on Monday 3 September 2018 we explore this interesting topic.
Understanding your financials is a critical part of any successful business but it’s not a skill that everyone understands. There are five things you have to get right.
1. Profit and Loss Statements
The money that is coming in and out of your business are the most basic numbers you need to understand. This is just a street map of what’s happening in your business on a weekly and monthly basis.
2. Balance Sheet
A balance sheet will contain your assets, liabilities and equity position. As the title suggest you need to balance those numbers. If they don’t balance then you a have problem.
This is the money you anticipate will come in and your of your business every year.
4. Cash Flow projections
This is similar to a budget but it specifically deal with how much money is flowing into the business. It should give you a good idea of what you can expect that month.
5. Cash Flow Statements
This gives a detailed breakdown of how much money is coming in, where it’s coming from and the form of the payment. Cash is king in any business and you need to know where it’s coming from.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.