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Attention all small business owners! 📢 Let's talk about the importance of maintaining a cash reserve for your business. 💰 In the unpredictable world of entrepreneurship, having a financial safety net is like having a superhero cape - it's your ultimate protection against unexpected expenses or economic downturns. 🦸‍♂️💸

 

Did you know that 82% of businesses that fail do so because of cash flow problems? 😱 Don't let your hard work go down the drain! By setting aside a cash reserve, you're not just being financially savvy, you're also giving your business a safety cushion to weather any storm that comes its way. 🌪️☔

 

So, how much should you keep in your cash reserve? The general rule of thumb is to have enough to cover at least three to six months' worth of expenses. It may sound like a lot, but trust me, it's better to be safe than sorry! 💡💸

 

Think of your cash reserve as your business's emergency fund - it's there to bail you out when you least expect it. So start squirreling away those funds today and give your business the financial security it deserves!

 

Business finances tend to be difficult for most business owners. They either do not comprehend or do not have the best professional who can help them understand. If we are being honest, even professionals do not desire to take the additional time to explain the financials to their clients. When they do, they are not always met with enthusiastic attention. Regardless, business finances are crucial. 

 

According to Intuit Quickbooks 20 small business financial literacy statistics to know in 2024, "Small business owners with low financial literacy at the start of their business journey could be losing money because of it. Nearly half (45%) say they’ve lost at least $10,000 in profits as a result of low financial literacy — 13% believe they’ve missed out on $500,000 or more. " Financial literacy, itself, is a difficult animal to tackle with all of the various methods being taught for how to wrangle in the coins. Add on the concept of business ownership, financial statements, and the like, and we can see that it is a struggle for most business owners. 

 

Another daunting statistic according to the same article from Intuit QuickBooks reports "Less than half (48%) of small business owners are confident they’re paying taxes correctly. This number jumps to 69% for small business owners who use an accounting professional. " It tends to be the case that if one does not know what to do concerning their personal finances, they will not know how to handle their business finances as well. 

 

According to Business.com Should you hire a bookkeeper? "A bookkeeper can help a business owner manage day-to-day finances. These experts monitor cash flow from different accounts, bills and invoices and can organize your books to improve money management." While we know that business owners love to focus on what generates revenue as it is what pertains to their skill and craft, the other side of business can not be mismanaged or ignored. 

 

What are some of the challenges that you have as a business owner? Have you sought professional guidance? 

 

Check out our article on Maintaining a Cash Reserve and follow our page on Facebook for more helpful tips. Touch base with us to see if we make a great fit to partner with your business and you as our client. 

 

💪💰 #CashIsKing #FinanciallyFabulous #SmartMoneyMoves