Every business has its blind spots. For many, it’s the books. Not because you’re careless, but because your energy is spent on building, serving, and growing. Still, when the financial side gets messy, the ripples are felt through your entire business.
So, how do you know if your books are a mess? Well, if any of these five signs sound familiar, it’s time to take action.
1. You’re Guessing, Not Knowing
You should never have to guess how your business is doing financially. But if you find yourself asking questions like, “Do I have enough for payroll this week?” or “What did I spend on marketing?” or “Am I making a profit on that product?” It’s a sign your books need attention.
If you don’t know where your money is going, that’s a red flag. With clean, organized books, you should have a clear picture of what’s coming in, what’s going out, and how much is left to work with (cash flow). This kind of clarity helps you align with your gut feelings, not just react to financial decisions on an emotional whim..
2. Your Business Account and Personal Expenses Are All Mixed Up
You know that moment when you check your account balance and you wonder if that lunch out with friends was charged to your business card? Mixing personal and business expenses is a disaster waiting to happen. It muddies your finances, makes tax time a nightmare, and can even affect how you are able to pay your employees.
So, if you haven’t already, it is a must to set up separate accounts for business and personal expenses, and stick to them. I have outlined the 4 STOP bank accounts I recommend for every business here (link blog on STOP accounts)
3. You’re Behind on Your Taxes
It’s one of those things we’d all rather avoid, but ignoring your tax situation will only make things worse. If you’re constantly scrambling to pay what you owe or trying to remember if you set aside enough for taxes, your books need a cleanup. Proactive tax planning is crucial for small business success.
When your financials are organized, you’re always prepared for tax season, no last-minute panic, no surprises. Mostly because every 2 weeks you are transferring part of your tax liability into your TAXES bank account via the STOP bank accounts.
4. You Can’t Pay Yourself Regularly
The whole reason you went into business was probably to create something meaningful while also supporting yourself from it. If you’re not paying yourself a consistent salary or, worse, if you’re not paying yourself at all, your business’s financial structure is out of alignment.
When you run your business with a solid bookkeeping system, you not only keep track of what’s coming in and going out, but you also ensure you’re compensating yourself properly for the hard work you put in.
5. Your Profit and Loss Statement Is a Mystery
Does the sight of your profit and loss statement give you a headache? You’re not alone! But your P&L has many secrets it will tell you about your business. Income to expenses ratios, month over month gains/losses, and year of year comparisons. It can even tell you the weekly cash flow trends of your business!!!
If your books are not up to date, you lose out and will continue to go with your gut.
With the right systems in place, your P&L becomes a powerful tool for making decisions, not just a set of confusing numbers on a page.
Time to Get Your Books Back on Track
If any of these signs sound familiar, it’s time to take action! At My CFO, we’re not just about crunching numbers, we’re here to help you take control of your cash flow. Whether it’s setting up a proper bookkeeping system, cleaning up your current records, or learning how to pay yourself, we’ve got you covered.
Because at the end of the day, cash flow isn’t luck, it’s strategy.
