When starting up a new business entrepreneurs have a lot to think about, from creating their business plan, hiring employees, up to designing their logos. Many important tasks to handle and decisions to make. Thus, financial management is left to the experts. Nevertheless, as an entrepreneur you should have an overview of your accounting and financial transactions from day one.
Many business owners start out without basic knowledge about accounting, but with a good business idea – and yet fail. The understanding of financial records is vital to making solid financial decisions. With what does my company succeed? What brings me the highest return? And where are possibilities to improve? Only by knowing your business figures and understanding your accounting records you will be able to answer these questions and to control your finances.
Also banks and investors, and sometimes even large customers sometimes want to have an insight in your figures, and you should be able to explain them. Not understanding your financials leads to poor decision making, which not only costs allot of money to the company and you but it hinders your business to grow.