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Today I’m answering some of the most common questions I get in our Profit Plus Program for Business Owners.

This one you may have even asked yourself:

“I just don’t understand financial statements. How can I make smart financial decisions when the information I have makes no sense?”

The answer to this question is two words: you can’t!

If the information doesn’t make any sense, you’re not going to be able to make smart financial decisions. And the trick is, unless you’re an accountant or a bookkeeper, you probably have not been formally trained in how to read financial statements. And even if you are formally trained in them, they still might not make sense, because the information that they’re giving to you is presented in a format which doesn’t always fit within our logical, rational reasoning process when we need to make a financial decision for our business.

So, how do we solve it? We solve it by implementing a system that’s easy to understand, that empowers you with information, so that you can make smarter financial decisions. One of the ways that we do this is through a cash management system that we call “Profit Plus.” With the Profit Plus system, we’re taking all the cash that comes in, we’re divvying it up into different accounts so that you, then, have the information right at your fingertips to make super-smart financial decisions.

And, in fact, you won’t even ever have to rely on your financial statements again. Now, I’m not saying, “You never want to look at them.” That’s not true, you do want to look at them. You do want to understand the information that’s included in them. This is also part of the program we run, where we actually give you an overview of what those financial statements cover and what to look for. But really, the answer here is to put a system in place so that you can make these financial decisions simpler and easier.

And when you know your numbers, when you know your information, you will absolutely be able to run your business better. I have yet to see a well-run business where the owner didn’t have a really good handle on the finances of the company.

 

What’s Next: Do you need help? Schedule a call with a Profit Advisor. Our complimentary one-hour session is the first step towards having a financially solid business. Schedule a call today.

Jennifer Dawn is the co-founder of Profit Plus Advisors, a Profit First Certified Coach, and a Provendus Growth Academy Coach. She has built two multi-million dollar businesses, is a published author, and accomplished speaker.