“What are we working for, and how do we set the stage for success?” Teaching classes about Financial Basics highlights the importance of acquiring knowledge about money management. Budgets and cash flow projections aren’t just for business owners. Learning about balance sheets and having command of the measurement tools that define performance helps us to achieve the goals we set. You must have a starting point.
For some, it is like learning a new language. It can also be very confrontational. There is no denying a financial condition when it is documented.
Your first step might be to decide that issues regarding finance can no longer be ignored. It is a huge step. (“Stop doing the ostrich!”)
Once the commitment is made to start looking at finances, those steps sometimes need to be made one at a time. Gently, please! Decisions made around the numbers have many different nuances, but one thing is for sure: They are in black and white and loom large.
The next would be to document where you are now. I would call that Point A, and once you know where you are, you can begin to decide where to go from here. Point A would be to come up with your balance sheet (a breakdown of assets, liabilities and equity), along with an income statement that outlines your income and expenses.
Small steps….keep those questions coming!