You’ve already broken down gender barriers by establishing your own business — now, it’s time to challenge the myth that women aren’t good at managing money.
S&P Global discovered that only 30% of women worldwide are financially literate, mainly due to a lack of educational opportunities. This is concerning, as one’s knowledge and skills in making financial decisions are crucial to achieving success in both life and business.
If you want to change the narrative and get the success that you deserve, here’s how you can learn how to manage your business’ finances:
Invest in your financial skills
Education increases women’s entrepreneurship levels and self-efficacy, making them confident enough to run their own show. Unfortunately, a lack of education is one of the major barriers against female entrepreneurship, which is why it has to be one of your first business-related investments.
You can start by signing up for short courses on accounting and finance through online learning platforms. There are many available on sites like Udemy and Coursera for a small fee. However, if you want a much more comprehensive education, that can be completed while you run your small business, top universities across the country offer online degrees. An online accounting degree allows students to set their own schedule and work 100% online, which is ideal for busy entrepreneurs looking to both upskill and receive a valuable qualification. A comprehensive accounting program will harness your skills in filing taxes, budgeting your finances, and increasing your profits.
Review your books regularly
Those accounting skills will come in handy, especially because you need to review your business’ books regularly.
Consider this task as an opportunity to check in on the state of your small business. Among many things, your books will show which product offerings are clicking well with customers, and which ones may need to change.
Regularly reviewing your company’s performance means it’ll also be easier to manage financial statements for creditors and tax authorities. After all, you wouldn’t want to miss out on deductible expenses from your tax returns.
Streamline your billing strategy
Here’s a piece of information that’ll definitely stand out in your accounting books: late payments. While it’s important to maintain relationships with late-paying clients, you can make sure that you won’t compromise your cash flow by streamlining your billing strategy.
You can automate follow-ups for unpaid invoices and track your clients’ interactions with them by investing in invoicing apps, such as QuickBooks and Square. This allows you to save precious time and makes it easier for clients to accomplish their end of the deal through easy payment methods. These tools offer clickable payment links to make this process faster for both parties.
Manage your loans properly
Loans are admittedly scary, but they can be necessary for your venture’s success. These loans can provide you with capital for your business or boost your cash flow for your employees’ salaries.
To effectively manage your loans, develop a profit plan based on your business’s actual performance. Set aside a portion of your projected profits each month, so that you can pay off your loans in time and even build up the credit of your business.
You’re the captain of your own startup, so you need the right skills and strategies to sail through the tough world of business. The odds are stacked against women entrepreneurs, but once you’re armed with the best tips and tricks, you’ll be more confident running your own venture.