The most important business accountant equation you need to know.

And it’s not assets = liabilities + equity!

I’m here to tell you about another business accounting equation – and it’s to do with your mindset.

In my last email, I spoke about business accountability and in this email, I’d like you to think of accountability as a glue that holds your business together.

Within the accountability equation, there are two other elements: commitment and results.

If we think about your desired results for your business. Say you’d like to pay yourself [think of your financial goal here, maybe $2k per week, maybe $10k per month] in 12 months’ time?

To be able to get there we need commitment and accountability.

Accountability comes from clarity over the numbers and commitment comes from wanting to provide the best possible business environment for your staff, your family, and yourself.

The financial numbers are a bit like a scientific equation.

They provide facts, they provide advice, and they provide knowledge about your business that you probably don’t even know.

By understanding the following accounting elements, you can completely transform your business – because you have the facts and numbers to tell you what to do next.

Here are the important things to understand:

Your profit & loss statement

Your balance sheet

Your cash flow statement

Your tax obligations and when they are due

A good bookkeeper can help keep your books up to date (essential for providing accurate financial information), and they can explain what these above areas mean to your business.

They can help put these numbers into context so that they make sense to you.

If you’d like a financial audit to run through these, send a private message or drop a comment below