If you’re running a business and you’re not a “numbers person,” I have good news and bad news.
First the bad news: if you don’t understand your numbers, your business will probably struggle, fail, or never reach its full potential.
The same consequences apply to other skill sets; for example, if a business owner lacks confidence in business meetings, or if they can’t meet delivery deadlines. Their big business dreams will likely never come to fruition because they lack a critical business skill.
Knowing and understanding your numbers is an absolute necessity for a business owner.
The good news is that understanding your numbers does not have to be complicated.
Here are some bookkeeping tips for people who don’t like numbers.
Educate yourself
Please don’t stop reading! I know numbers education sounds boring to you. It might turn your brain into knots. But a little bit of understanding goes a long way towards your business success.
You do not have to take a financial or bookkeeping course to understand (although it’s helpful!). Start by looking up the definitions of basic bookkeeping terms – accounts payable, accounts receivable, assets, and liabilities.
You could also watch a few YouTube videos to learn the basics. Or, review your reports with a numbers person to understand what each line means.
Basic bookkeeping information is extremely accessible these days, so use the sources available to you to fill the gaps in your financial knowledge.
Hire a collaborator
Notice I didn’t say, “Hire a bookkeeper.” A collaborator could indeed be a bookkeeper, but it could also be a spouse, a business coach, a business partner, or even an intern.
Your collaborator’s role is to help you understand your numbers.
A collaborator should be:
- A numbers person
- Someone you trust
- Able to communicate in a way you understand
Make reports visual
If you are the type of person who goes cross-eyed when looking at a report full of numbers, make your reports visual instead. You or your collaborator can convert the data into charts.
Charts are excellent because you can see trends. If your revenue line is going down, or costs are going up, you know you need to tweak your operations to adjust those trends in the future.
You can also set targets on the charts to see how your numbers are stacking against the targets.
Visual reports can give you the insight you need to make decisions in your business.
Just because you’re not intrinsically a “numbers person” doesn’t mean you are doomed to fail in business – as long as you take the steps necessary to understand your business’ financial performance.
