April 22, Knowing The Financial Truth About Your Business (Business Debtors Anonymous Tool #3)

Thought for today:

A business that doesn’t have accurate records is like a rudderless ship, tossed around by the wind and storms of market forces.

A member shares:

“Cash flow in my landscaping business was a very difficult problem.  I had a fleet of trucks and I used credit cards for gas and oil every day.  I had no idea how much this was costing until I got the bill the next month.

“It’s a seasonal business, and when business spikes you go out and make the dollar.  You don’t ask questions about where the money is coming from for gas. You pull out the plastic and you get to the job.

“You also don’t have energy to track money when you come home at night.  I had no cash reserve, no idea whether I bringing in more money than I was spending in any week.

“I wound up wasting a lot of money on late charges and high interest rates.  I was overextended on all fronts.  A few bad business investments in the off-season and a broken down truck eventually happened, pushing me into bankruptcy.”

A balanced approach:

Some businesses grow so fast that they don’t get a grasp of their cash flow.  When unsecured debts overwhelm them, their rates increase.  Other organizations keep a large cash reserve, but fail to take calculated risks and grow.   They lose competitiveness.

A balanced approach begins with managing cash flow.  We can use Accounts Receivable and Accounts Payable reports to tell what is coming up in the next 30 days.  We can then estimate a prudent reserve target for cash on hand.  When we write down everything we own, nd everything we owe, we can calculate our business’ net worth.

When we know the truth about where our business stands financially, we have power.  We may be tempted to stop and compare ourselves to other businesses or people.  When these feelings crop up, we need to avoid being greedy or fearful, and keep seeking clarity on our money, and minding our business environment.

BDA Tool Three:

We keep clean, orderly and accurate financial records, including Accounts Receivable, Accounts Payable, Cash on Hand, Inventory, Assets, and Outstanding Debts, and put all tax and bill due dates on our calendar.


  • Am I managing my cash flow, or is it managing me?  
  • Do I know my net worth, and that of my business?  Am I willing to find out?  
  • If I am not willing, what am I afraid of?

Meditation for today:

Our decision-making becomes more intuitive when we know what to measure. Decide on the metrics that are most important in your situation and industry.

Like the dashboard of a car lets you know how your engine is running and how fast you are going, so the measurements of your cash flow can help you gauge the speed with which you should take on new work.

Affirmation for today:

“I will maintain all my financial records  every day.  I will then spend some time each day considering the best metrics to use measure productivity.”

“I do not need to fear competition.  There are plenty of rewards for anyone who minds their own business.”

Prayer for today:

“I pray to understand the market forces that are effecting my business, and to face them without fear, knowing that there is plenty of prosperity for everyone.”

Follow Through:

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