Business Resources: Knowing Your Numbers Workshop Recap
- Spring Hill Chamber
- Business Resources
The following is a recap of the Spring Hill Chamber of Commerce workshop on the topic, Knowing Your Numbers on July 31, 2023 with special guest speaker, Tina McGill, CPA of MMAS CPA. Chamber members can log in to their account to hear the audio, review speaker slides, and access any resources from the speakers.
Workshop Information, Takeaways, and Insights
Presentation by Tina McGill, CPA CEO of MMAS CPA
Importance of knowing your numbers as a business owner
- Discussion on personal budgeting
- Understanding business budgeting
- Insights into marketing budget
- Discussion on taxes
- Importance of record keeping
- Understanding financial statements
Takeaway 1: Effective budgeting is key to business success.
The webinar emphasized the importance of budgeting for both personal and business finances. Therefore, Tina urged listeners to follow the 50-30-20 rule for personal budgeting, which allocates 50% of income to needs, 30% to wants, and 20% to savings or debt repayment.
As for business budgeting, she stressed that it’s important to understand business needs and to plan accordingly. “Everybody in here is a person, and everybody needs a budget,” she said. “We want to make sure that you as an individual are prepared for all the changes in the economy and that you’re making your money work for you.”
Takeaway 2: Utilize technology for business efficiency.
Tina also highlighted the importance of using available technology and tools to streamline business processes and keep track of finances. Tina recommended several apps and tools for budgeting, tracking mileage for business trips, and managing payroll. Additionally, Tina emphasized the importance of having a solid understanding of your business’s cash flow.
Takeaway 3: Understand and plan for taxes.
Tina stressed the importance of understanding the tax implications of various business decisions and advised listeners to seek advice from a trusted CPA, particularly one that understands your industry. After presenting an overview of business financial statements, Tina recommended reviewing the business entity structure periodically as the business grows. Finally, she reemphasized it was important to keep business and personal finances separate.
Insights included:
- It’s important to separate personal and business expenses and to maintain an individual budget for both.
- Understanding your customer acquisition cost can help you plan your marketing budget more effectively.
- Paying yourself first before making payroll can lead to financial difficulties.
- Utilizing free tools and software for budgeting and record keeping can save time and reduce errors.
- It’s important to understand your tax obligations and to plan for them in advance.
- Regularly reviewing your business’s financial statements can provide valuable insights into its financial health.
- Hiring a trusted CPA who understands your industry can provide significant benefits.