How to Make Sound Financial Decisions

Have you been looking to organize your finances and make better decisions for your business? Whether you are a brand new business or have been running for years, Danielle Hayden shares her tips to stay in control of your finances and reach your business’s goal.

In this episode Danielle Hayden shares her recommendations on how to make sound financial decisions for your business. Whether you are frugal or an over-spender, Danielle discusses steps you can take to maximize your income and reach your business’s goals.

Episode 063: How to Make Sound Financial Decisions

About Danielle Hayden

Danielle Hayden is a reformed corporate CFO (chief financial officer) who is on a mission to help rule-breaking female entrepreneurs understand their numbers so they can gain the confidence needed to create sustainable profits. After spending 10+ years in the boardroom as a corporate finance officer, Danielle is now in her sweet spot as the co-owner of Kickstart Accounting, Inc. where she helps business owners with bookkeeping, financial analysis, and education and as the author of the Profit Planner book series. When Danielle isn’t crunching numbers on her clients’ behalf or crafting the next iteration of the Profit Planner, you can find her hanging with her two kids as she inspires them to lead their fullest lives or doing any, and almost every fitness-related activity ranging from Spartan races to pilates.

Website: Kickstart Accounting
Instagram: @Kickstartaccounting
Facebook: @Kickstart Accounting Inc.

Establish an Efficient Accounting System

Before you make any decisions, it is extremely important to establish an efficient accounting system and evaluation process. Use accounting systems, such as Quickbooks or Xero, instead of Excel. Excel does not give you as many options or freedom to organize your numbers.

To maintain a clean bookkeeping record, make two separate transactions when you make purchases between personal and business. To keep track of your purchases, use Receipt Box or Expensify to store all your receipts. When the time to do your taxes comes, you can defend your purchases. In addition, have two separate individuals to do your bookkeeping and taxes; this will allow for there to be a checks and balances.

Define your Goals and Evaluate

Before you make any decisions, you need to define your business goals. Look at your numbers and see if it can support such goal. This is why it’s important to have an efficient accounting system. This way you can run your balance sheet, look at the revenue, and evaluate what you can and cannot support. Ask your self do I want to improve customer service or increase profits? Regularly analyze your balance sheet and shift your goals accordingly. To maximize your finances, go through your subscriptions and vendors, and ask yourself whether you are using it and if it has been doing its job. However, do not always go with the cheapest option as it can be more expensive in the long run. When it comes to social media, it can be hard to analyze whether it’s beneficial. To help solve that issue, use a point system to evaluate its profitability.

“Only spend money when it’s going to help me achieve the goals of my business.”

Do Not be Afraid of the Numbers

Many people become afraid to look at their balance sheets and income statements because they do not understand it. However, you should engage and familiarize yourself with the numbers. This will help you see what has worked in the past and how you can replicate to give you the same or even more success. You need to be honest with yourself to plan your goals. Analyze your budget and forecast your income to help you create budgets that will either help put boundaries on over-spending or give you permission to spend more. Danielle also encourages using the 48-hour rule, which gives you 48 hours to evaluate before you make a purchase. Danielle recommends reading books, such as John Warrillow’s “Built to Sell,” and surrounding yourself with other professionals to help you cultivate a money mindset.

What’s Next

If you mention listening to this episode, Kickstart Accounting Inc. will waive their onboarding fee.

You can connect with Danielle Hayden on Instagram @KickstartAccounting or on her email [email protected].

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