The Columbia Valley Pioneer • Women in Business ~ 1
February 7, 2014
Eagle Ranch dining room manager, Shannon Root Photo by Steve Hubrecht
Jayne Magri, It’s A Wrap! Specialty Gifts and Baskets Photo by Greg Amos
Women in Business
Maxine and Spring Hawes, co-owners, Evolve Used Furnishings Photo by Greg Amos
Jesse Blakley, co-owner, Perrin Structure and Design Photo by Dan Walton
Keeping on top of your finances Submitted by the Women’s Enterprise Centre Many small business owners take a basic approach to financial management. They have two main concerns: whether their bank account balance is positive; and if they’ll get their business income and expense information to the accountant in time for their annual tax return. The problem with this approach is that by the time you discover there’s a problem with your company’s financial performance, it may be too late. Taking corrective measures early on will vastly improve your chances of success. There are three types of financial statements you should be familiar with: • Income statement: this shows the income and expenses the company has incurred over a given period of time. • Balance sheet: this gives a snapshot of your company’s financial state at a given time - what you own (your assets) and what you owe (your liabilities). • Cash flow statement: this reports the cash generated and used during a specific period. This differs from the income statement because cash may not change hands when a sale or purchase occurs. As a business owner, looking at your financial statements annually isn’t enough, especially if you don’t have the information until several months after the end of your financial year. You really need to look at your financial statements on a quarterly or even monthly basis. Keeping on top of your business finances is getting easier with the availability of software such as Sage 50 Accounting or QuickBooks. But if you use these tools, make sure that you understand how to enter in the information properly. If you don’t, the financial statements generated by the software won’t make any sense. Many bookkeepers and accountants offer training on accounting software. To save a lot of headache for everyone down the road, get your bookkeeper to help with the set up. It’s also important that you understand what your financial statements mean, so that you know how to use the information they provide. Women’s Enterprise Centre offers two learning guides to help with this: Financial Understanding and Financial Management. Women’s Enterprise Centre is the leading business resource for BC women who own a business or are thinking of starting a business. Our team of professionals provides business loans up to $150,000 to start, grow or buy a business. We also offer workshops, business advisors, mentors, resources and a supportive community to help women start, grow and succeed in their business. Visit our website at www.womensenterprise.ca and our Facebook page at www.facebook.com/wecbc or call 1-800-643-7014 to get connected today.