How does your financial know-how stack up against other small businesses?
Do you know what the role of a balance sheet is?
Do you know what you can do to improve your short term cash flow?
These and other questions were posed to Canadian small business owners by Intuit’s research team and the results were telling. 83% of respondents displayed only basic or below-basic financial literacy, a skill which is becoming increasingly important in an environment where only 51% of small businesses are expected to survive past their 5th year of operation. Respondents of the questionnaire cited time with an accountant, information sessions with other small business owners, and online tutorials as tools they wanted to have access to. Check out the results of the study summarized in a neat infographic below:
Although we definitely recommend working with an accountant and bookkeeper, our past experience advising clients has revealed that educating yourself is just as important. Your accountant can only do so much when your financial house is in disarray.
Fortunately, helping small businesses learn to grow and flourish is what we love to do. This is why we’ve organized From Idea to Open, a workshop designed to connect entrepreneurs with small business experts. We aim to arm attendees with the knowledge and confidence necessary to develop the company they’ve always dreamed of. Our business planning e-book also gives excellent, easily digestible advice on how to start organizing your financial life and modeling your financial projections. We are always open to answering your questions so don’t be afraid to send us a hello.
Do you have any small business questions you’d like answered? Tell us about them!