3 Tips Improve Financial Health Red Pocket Book Blog.jpg

First and foremost, I want to congratulate ALL business owners! Until you experience running a business firsthand, it's hard to truly appreciate the dedication, effort, and perseverance it requires. Having worked in the corporate world and now running my own business, I deeply admire every business owner. It takes passion, commitment, grit, and kindness to build and sustain a successful business.

As business owners, we juggle multiple roles — from marketing to operations and everything in between.

Here are three helpful tips for managing your finance department effectively.

1. Know Your Numbers

Business owners need to be intimately familiar with their financial data. Ask yourself these important questions:

Do you know your profit margins?
Are you tracking and improving on your KPIs (Key Performance Indicators)?
Are you consistently looking for ways to reduce expenses?
Do you know which product or service is the most profitable?
Are you collecting all your accounts receivable (AR)?
Do you have a financial forecast for the next 1-3 years?
Are you aware of your financial weaknesses?
Could your business survive another "COVID" - type economic disruption?

2. Stay on Top of Your Taxes

One critical aspect of running a business is ensuring your taxes are filed correctly and on time. Staying compliant with CRA tax requirements is essential to avoiding penalties and ensuring your business maintains a strong financial foundation.

It's crucial to have a reputable accountant—one whose references you've thoroughly checked. If their fees seem too good to be true, that may indicate a lack of experience or thoroughness. Invest in someone who understands your business needs and can provide proactive tax advice.

3. Ask for Help from the Right People

All these financial tasks can seem overwhelming, especially when you're focused on delivering great products or services to your customers. While traditional bookkeepers handle essential record-keeping, they may not offer the strategic insight needed to help you achieve long-term financial stability and growth.

That's where financial consultants like myself can help. Even if you don't need my expertise full-time, having someone to provide guidance on forecasting, financial strategy, and resilience planning can make all the difference in sustaining your business's success.

Remember: Understanding your numbers isn't just about bookkeeping—it's about empowering your business to thrive. If you stay informed and proactive, you'll be well-equipped to navigate challenges and capitalize on new opportunities.

If you’re feeling overwhelmed, short on time, or ignoring your financials in hopes they'll improve on their own—know that you're not alone. More importantly, you don't have to face this alone. At Red Pocketbook, I’m here to support your business’s financial health. I offer a free discovery call where we can take the first step together. During this conversation, we'll assess your business's financial landscape, identify improvement opportunities, and start building a strategy for your success.

Taking control of your finances is the key to long-term stability and growth. Let’s connect and start your journey to financial health and confidence, today.

Ready to take the next step?