If we had a dollar for every business owner who asks us “where did my profit go?” our Christmas Party would be a grand affair. In the lead up to end of financial year, most business owners are focusing on their Profit & Loss. Particularly if their financials are showing a profit and they need to pay tax.
But … where did my profit go? The answer is in your Balance Sheet. There is a direct correlation between your Profit & Loss and your Balance Sheet.
A Profit & Loss shows how your business performed, the Balance Sheet shows where the profit went. By reviewing the difference between the figures in last year’s Balance Sheet and this year you can find where your profit is hiding.
Most entrepreneurs and business owners don’t have an accounting degree. What they do have is amazing ideas and passion for their business. However, without a full understanding of your financial position, it is easy to make bad financial decisions which can send your business backwards.
We run a 12 month business improvement course from our offices in Upper Mount Gravatt, Brisbane, specifically for women in business.
The course offers practical, real world advice and empowers women by improving their financial literacy – when you understand your businesses finances you can make informed, strategic decisions.