If you want to succeed in business, you need to know about financial management. No matter how skilled you are at creating a product, providing a service, or marketing your wares, the money you earn will slip between your fingers if you don’t know how to efficiently collect it, keep track of it, save it and spend or invest it wisely.

Poor financial management is one of the leading reasons that businesses fail. In many cases, failure could have been avoided if the owners had applied sound financial principles to all their dealings and decisions.

Poor financial management is one of the leading reasons that businesses fail. In many cases, failure could have been avoided if the owners had applied sound financial principles to all their dealings and decisions. Financial management is not something that you can leave to your banker, financial planner or accountant—you need to understand the basic principles yourself and use them on a daily basis, even if you plan to leave the more complicated work to hired professionals.

Your Basic Bookkeeping

To succeed in business, one of your most important tools is financial analysis, based on your business records. Accurate financial records will help you answer some very important questions, such as:

  • Are you making money, or losing it? How much?
  • Is your business on sound financial ground?
  • Is financial trouble lurking ahead?

A sound bookkeeping system is the foundation on which all of this valuable financial information can be built.