And what is financial fluency!
You start a business for many reasons and you have to learn many skills. Some will come to you more naturally than others. But whatever business you run you will need some level of financial knowledge. When starting out you may do this for yourself and you learn by trial and error and will rely on your end of year accountant to sort you out. But then it may be too late. You may have been pricing incorrectly but you can’t go back some months after you sale and say “I should have charged you more”. You need to get is right at the time.
And you need to understand how finance works in order to support company growth. As a company grows you will take on staff and when taking on your staff to help with finance you need to be sure that they are doing a good job. So you need to have some financial understanding to do this.
You need to understand what is included in your accounts – your Profit & Loss Account and Balance Sheet. Make sure you understand what these mean in your business.
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