4th Guiding Principle
But why spend time stressing about your financials when that energy could be better used to create new business opportunities and develop relationships?
When you stop and think about it, it does make a lot of sense to build a system to manage your financial information – and then follow it.
Follow it? Yes, that’s the harder part. You need to be 'on to it' at least each day, week or month. And this is how you avoid wasting your energy on unproductive financial stress.
So, what potential stress points are we talking about?
How about tax – if you’re in business, have you got your tax neatly saved away, ready to pay on the due date? If you have, great. But is it saved in a place that’s making the greatest saving in any interest repayments?
Having the right system ensures you get the best out of your money without having to stop and consider the various options each time.
What about GST and FBT and ACC obligations – are you paying those in the most efficient ways? Are you claiming what is due and paying the correct amount?
Any good system is likely to include a budget. What is a budget and what does it mean to you? Why would you bother having one?
Where is all of this careful management leading to anyway? What are the major financial goals in the life of your business and how does that affect your personal life?
Knowing where you are, planning for upcoming outgoings (and hoped-for incomings) is very important to you and your future ambitions.