Is your money in balance?
A business owner has responsibility for maintaining the money balance— financial wellness in their company and their personal life. The other day I chatted with a spin pal, Ivonne. She’s an Investment Broker for Merrill Lynch. I appreciate her sense of financial balance. Understanding that main street businesses have multiple financial concerns is important. At times, this can be an overwhelming burden.
Ivonne chose not to be quoted as of the writing of this article, despite my desire to give her credit. I respect that. Being anonymous allows us to share our thoughts without being placed in the reader’s spotlight and provide profound insights. Anonymity can also allow us to discuss financial realities while hiding behind the curtain that allows us to think about our individual situations in respect to money.
We discussed the reality that lots of folks encounter—whether self-employed or employed by a company—the struggle to save sufficiently for retirement, much less a rainy day. America’s economy is bearing down on businesses with increased taxes and regulations, as well as families with rising costs for necessities such as food, clothing and housing.
Despite financial hardships, Ivonne encourages her clients to save, but not to bring financial harm to their business nor their family. Her advice is simplistic. A business owner pays their bills timely or obtains appropriate financing. The bill paying process must account for business and personal expenses, with reasonable consideration for saving. Reasonable means different levels of saving for different folks.
Balancing Your Money
Providing for today’s needs while planning for tomorrow’s takes insight. I know the financial challenges of this as I own my own business. Fortunately, I love numbers and enjoy planning my welfare and my clients’. I view financial planning just as I do my exercise regimen—always pushing myself, but not to an extent that I can no longer exercise in a healthy manner. I pay my bills and save to a point where my finances aren’t in a detrimental state.
Planning with the assistance of technology helps immensely. Technology assists small business owners in the financial arena. Several solutions exist, such as Xero and QBO, that will provide real-time data creating an opportunity to review income and spending patterns, and forecast future needs. With spending habits in the rear-view mirror, with real-time visibility, you can have 20-20 vision for the future in the here and now. Adjusting spending behaviors can avoid bigger financial challenges down-the-road.
Knowing your numbers in real-time is a big benefit of cloud accounting. While you may choose anonymity while mulling over financial realities, don’t hesitate to get real and be in the know.