On today’s episode, we’re talking all about numbers and financial reporting!
…Okay, so I probably lost the attention of about half of you with that sentence.
Stay with me, today’s subject is critical for you to grasp!
I totally get it: As creative designers, most of us don’t love financial reports, extensive budgeting and expense tracking.
In my first jewelry business, the task I most wanted to avoid from the very beginning was entering anything into my accounting software.
But I learned quickly that understanding my numbers was the key to having a successful and profitable jewelry business.
Hear me out.
In my first business I lost track of my expenses (versus revenues) when the commodities market spiked. I didn’t realize it at the time, but I wasn’t properly keeping track of my cashflow, and it truly was the beginning of the end for that business.
If you don’t know your numbers, then I can almost guarantee you that you don’t have a business, you have an expensive hobby.
That’s why I am so excited to have Mariel Diaz, founder of Accounting For Jewelers, as my guest today.
Let’s jump right in!
Financial Reports to Watch
The one financial report you should be looking at daily is…. you guessed it, your budget. Updating it each day with your actual income and expenses will give you a great snapshot of the financial health of your business.
On a weekly basis make sure you’re monitoring your income statement and balance sheet. These two tell the best story of your finances and you really can’t have a business without them.
Knowing your breakeven point is essential to developing your budget. The breakeven point is the point in which you’re able to cover your expense with the income that you’re bringing in.
Keep in mind that often you might think you know in your head what all of your expenses are. But until they are listed out on a Profit/Loss report, you might not realize exactly how much you are spending compared to how much income your business is generating.
There are so many options out there for accounting software! Mariel recommends Xero, which is the leading accounting software worldwide. You might be surprised to hear her thoughts on QuickBooks.
What it all comes down to is having systems in place that allow you to grow your business without feeling constantly overwhelmed – or worrying about the dwindling numbers on your bank statement.
If that resonates with you, you’re going to want to check out our Multiply Your Profits course.
Robin and I created Multiply Your Profits to help you organize your jewelry business to make more money and regain your free time.
In fact, when we started Flourish & Thrive Academy, it is the ONLY course I wanted to develop for F&TA in the beginning.
You might be wondering why?
Because you’ll discover how to organize your business in a way that creates more free time and more profitability.
(Cha-ching..learn to pay yourself first.)
Registration is closing soon though, so if you’re interested click here to learn more about Multiply Your Profits.
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xo, Tracy Matthews
Chief Visionary Officer
Flourish & Thrive Academy