Good Financial Reads: Money Management for Business Owners

We have a specific set of videos just for business owners. We will be talking about legal structure, entity selection, operations, accounting, and payroll. Today we will be talking through what small business owners need to know about the balance sheet.  

Interest rates caved this year worse than Dak Prescott’s ankle, making now a great time to buy for many business owners. In this article I want to look at the difference between buying and leasing automobiles through your business and hopefully, through the process, help make your decision a little easier.

In our recent video series dedicated to small business owners, we have talked through some common financial statements like the Balance Sheet and the Income Statement also known as the P&L.  Now we are going to talk through a Cash Flow Statement which highlights the inflows and outflows of cash.  And for every business owner, cash is life!  It’s what keeps the business going.

Immigrant business owners founded about 25% of new businesses in the US. There are many successful immigrants who operate small businesses all over the country. 

Unfortunately, there are many scams targeting businesses and many of them prey on small business owners. Immigrant small business owners can be especially vulnerable to scams because of language barriers, a lack of familiarity with US customs and laws, and a strong desire to form relationships with new customers and vendors.

We’ve been doing videos recently for our small business owners.  We understand that so much of your time and energy is spent on your business or building your business, that it’s often not in your “business”.  That’s what we want to talk about here. How do you set up an accounting structure or bookkeeping tasks so everything is in place where you can get reports and know the health of your business? 

One of the best things that our family has done in recent years is take month-long road trips in an RV. Last year we did it for the first time with our then one and a half year old son. We have generally taken these in the summer and fall. They are wonderful times to experience new things, bond, and build incredible memories as a family.

Much of the focus of this blog is on increasing the value of your time by knowing your true hourly wage (see this post for more details). While this, in my opinion, is the most important metric in evaluating your true financial growth, there are other ways to increase the value of your time that aren’t monetary.