Cashflow—it’s not just about your profits. It’s about how your income works alongside your assets and liabilities. Understanding this balance is essential if you want your business (and life!) to thrive.
What’s Really Going On with Your Bank Account?
Sure, your bank account balance is real, but does it tell the full story? Here’s the thing:
- Do you know your true financial position?
- Are you clear on how much your business needs to generate for you to live the life you want?
- Have you figured out what you need to earn personally—and why?
Whether it’s maintaining your lifestyle, building wealth, or supporting family goals, it’s critical to dig deeper than just checking your bank balance or profit statement.
Assets and Liabilities: The Bigger Picture
It’s not just about what you earn; it’s about what you owe. Your liabilities might include things like:
- Trade creditors
- GST, PAYG, and superannuation obligations
- Vehicle or equipment leases
- Loans (business or personal)
Knowing what’s in the mix gives you the clarity to make smarter decisions.
How to Take Control
You can’t plan for the future if you don’t understand your past and present. Once you get a handle on where you’ve been and where you are right now, you can start looking forward with confidence.
Here’s the kicker: When you take charge of your finances, everything changes. You’ll move from feeling overwhelmed or stuck in survival mode to feeling empowered and in control. Problems don’t disappear, but they’re manageable because now you know exactly what you’re dealing with.
What’s Your Story?
Take a moment to think about where your business is now and where you want it to go. What’s your next step? The goal is to create a financial system (an economic engine, if you like) that makes sense to you and supports the decisions you need to make to get where you want to be.
Why Forecasting Is Your Secret Weapon
Forecasting isn’t just a nice-to-have—it’s a must-have. It helps you:
- Stay on top of your cashflow.
- Anticipate what’s coming next.
- Review how you’re tracking weekly, fortnightly, or monthly.
The bottom line? Don’t fly blind. Keeping your finger on the pulse of your finances is how you move your business forward.
You’re in Business to Make Money—And That’s Great
There’s nothing wrong with wanting your business to be profitable. That’s the point! But getting your business under control isn’t just about making money—it’s about putting yourself in the driver’s seat so you can achieve the lifestyle and goals you’re working so hard for.
So, take that first step. Understand your financials, make a plan, and get things moving. You’ve got this.
We’re right here with you – all the way.
