Knowing Your Numbers: Three Key Dimensions Every Entrepreneur Should Focus On
Mar 10, 2023As entrepreneurs, we always get this advice that we need to know our numbers, right? I want to be clear, this advice isn't suggesting you memorize your exact numbers. Yes, we should know some of these things, especially in a product-based business, but I want to talk about the three different dimensions where you should be focusing your attention if you're looking to get to know your numbers a bit better and to start using them to your advantage.
It's really not enough to just categorize your transactions in QuickBooks! A lot of folks assume that getting to know your numbers means getting QuickBooks, making sure you're going in, allocating your transactions every month, maybe you're reconciling your bank statement. Cool box checked, I'm done. Not quite, it doesn't really mean that you have any ownership or mastery of what those things are telling you. Tune in to learn more about the three dimensions and what they mean for your business!
In this episode, you will learn the following:
1. How to use financial data and numbers to your advantage as an entrepreneur.
2. How to develop an effective advisory practice and serve your clients with high value services.
3. How to leverage the tax law to save money and maximize your success as a business owner.
What you'll hear in this episode:
- The three dimensions of getting to know your numbers.
- What is performance? What does it mean?
- How do you get into the advisory space?
- What is compliance?
- How to drive results in different areas.
- Once we get into strategy, that’s where the needle moves.
Here are some brief snippets from this episode:
[00:00:49]
As entrepreneurs, we always get this advice that we need to know our numbers. But it's not enough to just categorize your transactions and QuickBooks. Instead of just maintaining the data, you should be using it to make decisions.
[00:02:54]
From May 16 to 18th, Michael King and his team of trainers and speakers will be teaching everything from leadership to technical skills. One of these rooms is the CFO accelerator live over three days. Check out the link in the show notes for more information on the event and a special discount code.
[00:06:14]
The next area is compliance, which is really the box checking. Are you paying your estimated taxes? Are you keeping the IRS and the state agencies happy? Asking these types of questions to drive results in these different areas.
[00:08:11]
Most people think that hiring a CFO means that we can dive right into strategy. But it's not always all strategy. You really can't have compliance until you understand your performance. Once we get into strategy, this is where the needle moves.
[00:10:58]
Which of these three areas are you looking to focus on more in your business right now? Do you feel like you are completely filling up each cup of performance, compliance and strategy? Share your thoughts on today's episode on Instagram.
Related episodes:
216. The Most Undervalued Trait of an Accountant
232. Growing Your Side Hustle with Nick Loper
239. How Do I Break Up With My Accountant?
Resources:
Attend The CFO Accelerator Live: https://www.thecfoaccelerator.com/shannon
Find everything you need at www.keepwhatyouearn.com! https://www.keepwhatyouearn.com/
Questions about this episode? Text me!: https://my.community.com/shannonweinsteincpa
Chat about this episode in the Keep What You Earn Community – http://keepwhatyouearn.circle.so
Hire us: https://www.fitnancialsolutions.com/accounting
See how much you can save with an S Corp: https://www.keepwhatyouearn.com/keep-what-you-earn-s-corp-calculator
Find me on IG @shannonkweinstein
Meet me face-to-face on YouTube: https://www.youtube.com/channel/UCMlIuZsrllp1Uc_MlhriLvQ
Featured in Yahoo Finance! Read more here: https://finance.yahoo.com/news/10-bookkeepers-accountants-watch-2021-113800161.html
The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.
