As an entrepreneur it’s so important to know the basics of your numbers and financial statements so you can build a strong foundation for your business as you continue to grow and increase your revenue. 

In today’s episode, I’m sharing some of the basic terms and definitions that you should be familiar with when it comes to your business accounting and your numbers.   

In this episode, Danielle also discusses: 

  • Cash basis vs accrual 4:15
  • What financial statements include 9:04
  • EBITDA- what it means and why you need to know it 19:24
  • Balance sheet and what to know about them 22:17

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Things Mentioned in Today’s Episode: 

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Full Episode Transcripts:

Intro  0:00  

Welcome to entrepreneur money stories, the podcast for women entrepreneurs who want to dig into their money stories so they can break free from limiting beliefs around money once and for all. Hosted by Daniel Hayden, owner of kickstart accounting, Inc. This podcast is a series of real conversations about money mindset with valuable and action packed takeaways for the entrepreneur who’s building their abundant empire. Danielle is a reformed corporate CFO who’s on a mission to help rural breaking female entrepreneurs understand their numbers and gain the confidence to create sustainable profits. And now here’s your host, Danielle Hayden.

Danielle  0:40  

Welcome back to another episode of entrepreneur money stories. I’ve been doing a lot of thinking lately about being a business owner and how easy it is for us to get distracted and chase after the fancy key performance indicators, KPIs, metrics, scorecards, whatever our latest guru, business coach or fan favorite on Instagram or podcaster. And we can get really distracted by getting fancy by trying to do the next thing. I was recently listening to a podcast on the item I let show with Allen Stein, who is a very famous trainer and coach for the NBA. Now, I know most of us as business owners weren’t going anywhere near the NBA or trying to, however, he was telling a story about Kobe Bryant and his amazing work ethic, but not in the way that you would think. So he had met Kobe for a early morning practice. And he was amazed to see that Kobe had spent all of his time working on the basics, the basic foot drills, the basic drills that he needed to be an expert at, in order to perfect his game. And so as business owners, let’s take it back to the basics, knowing our numbers and holding ourselves accountable to looking at the basics on a regular basis. Now, I know this isn’t the shiny stuff. This isn’t the next exciting thing. However, I cannot tell you how often, when we meet with our clients here at Kickstarter, counting on a regular basis, we are able to hold accountability and space for business owners to look at the basic financial information on a regular basis. And I cannot tell you how often we come away from these calls with profound insight, new strategy, new thoughts about what’s working and what’s not working, new needs and leads of resources that are needed by our clients. So I’m encouraging you to be like Kobe, to be like one of our clients. And start to think about the basics of your numbers, the basic financial statements. So we’re going to do a few episodes in this taking it Back to Basics series. So today, we’re gonna start with the definitions, right, taking it back to the terminology. Now you’re gonna hear some accounting terms here. And I try to usually try not to get us into the weeds and spend too much time with language that is not used in the common business world. However, I want you to be able to understand this terminology when you hear it being used with a business coach, when you hear it being used by your mentor, or by your banker, investors, lenders, your accountants, your tax accountant, your bookkeeper. So I want you to have a familiarity with this language. Now I know for some people, it is really difficult to hear this information and retain it. So they’ll also be a handout in the show notes that goes through the definitions of all of these terms. If you are more of a visual learner, we’ll have that available for you as well. So what are some common terms that count terms that we hear in the industry that cause a lot of confusion for our clients? I’m going to start with cash versus accrual accounting. Now, this can be a very difficult concept for business owners. So be really really patient with yourself if this is something that you find confusing, or difficult to wrap your head around when we decide each year how we’re going to handle our bookkeeping or accounting systems, we have to decide if we are cash basis or accrual. Now you cannot flip flop year over year and decide one year you’re going to be cash when you’re you’re going to be accrual. You have to make this decision and stay consistent over time. So what do these two terms mean? cash accounting accounts for business transactions on your financial statements when the cash flows in or into your business or out of your business. So it does not matter. If the revenue is for a service in six months, or if it’s a service for that you are performing right now, the day that your client pays you the money, it is considered revenue sales. Now, the same thing goes for when you’re spending money. It doesn’t matter if the conference isn’t going to isn’t going to be until December. Or if the conferences this month, it doesn’t matter if you’re selling the inventory in six months, or you’re selling the inventory right now, the day the money leaves your checking account, it is considered an expense, I could do an entire podcast on the benefits or drawbacks of cash versus accrual. I didn’t want to spend too much time on this. But I do want to elaborate that most of our clients are on cash basis financial statements. Cash accounting provides a simple method to your record keeping. We don’t need to spend a lot of time or energy deciding when inventory is going to be sold. What is the actual cost of goods sold, especially in today’s market, as we’re having huge fluctuations in our goods right in our goods? And in our direct labor? Right? How much money are we spending on labor that is constantly fluctuating in today’s market when we use cash basis financials? We don’t have to spend as much time, money, resources or energy as a business owner determining when things are going to be used, and how much they are used. And what the value is that we pay for those goods. Now let’s dig into accrual accounting. The definition of accrual accounting is that we recognize revenue when it is earned, and expenses when they are incurred, regardless of when money flows in and out of your business. Sounds difficult already, right? This means that if you are performing a service or selling a good in a future month, then you cannot recognize that sale, or that revenue until the month that the service or product is actually delivered. And the same thing goes with the expenses. And this is where it gets really really difficult for business owners, we actually have to hold our inventory in our balance sheet as an asset until the inventory is used. So it will sit on the balance sheet. And once we use that inventory, it becomes the cost of goods sold. Now, I mentioned cash is a simpler method for business owners, because we don’t always have the time and the resources to dedicate to the analysis needed for accrual accounting, when we’re doing accrual accounting, we as business owners have to be able to identify our price, how much each cost of goods sold, or direct labor, it costs us in order to deliver that product or service. And that has to be maintained over time. So as the prices rise of our goods and services, we have to constantly be updating it. And so when that item is sold, we are actually recognizing the right cost of goods sold, there can be a lot of issues in accrual accounting, if we are not putting in the right amount of time and resources to ensure that our inventory balances are correct on the balance sheet, and that our cost of goods sold is accurate. So it really wants you to talk to your tax accountant, your bookkeeper Your Money Team about what’s right for you, cash versus accrual accounting. But I hope that you’re going to leave this with just a better understanding. As you’re having that conversation with your tax account with your bookkeeper. Do you have a better understanding of what that means? Alright, let’s dig into the income statement or not, also known as the profit and loss statement. So, again, there’s so many terms and accounting, it could be overwhelming. But I think one general term that we’ve heard people say is your financial statements. And what does your financial statements include? Your financial statements include income statements, or and also known as profit and loss, the balance sheet and the cash flow statement. So whenever somebody says, I need to see your financial statements, they’re looking for all three reports. And the income statement is interchangeably known as the profit and loss statement. All right, the first area of the income statement is known as revenue or sales. I know accountants, bookkeepers, they like to really throw the trucks ao always interchanging these terms revenue and sales are used interchangeably on the profit and loss statement. So revenue or sales is any money earned by your business now here kick started counting we really tried to stay consistent, always calling the income statement. The income statement is not interchangeably using it as a profit and loss. And we like to use the word sales so that you always know that we are talking about your gross sales. Now the gross sales is before you pay any fees. So any merchant fees, that is the gross amount, the total amount that you are collecting from your customer, the next area on your income statement is the cost of goods sold. Now the cost of goods sold is any expenses that are directly related to your product or your service. Now, I’m going to repeat that because this is really important. Your cost of goods sold is only the expenses that are very directly related to you providing that service or that good to your customer. Now, if you are not selling a product, your direct labor would be considered your cost of goods sold. Now this is the labor that is involved in producing the product or providing the service to your customers. So remember, cost of goods sold is generally a term used for your product based businesses. And direct labor can actually be used for both your product based businesses as well as your service based businesses, because no matter what you have labor to create your product. Now in QuickBooks, one of the things that we cannot change as bookkeepers is the wording that’s used in the wording that’s used in this subcategory is cost of goods sold. So when you see that terminology on your income statement, adequate box, I want you to remember that these are the expenses that you need to incur directly, that don’t have a direct impact to you providing that good or service to your customers. Sometimes we also see under our cost of goods sold, we also see supplies and materials. Now these can be some general supplies and materials that are used to serve your customers or to provide your product but not necessarily your inventory. So usually your cost of goods sold, specifically your inventory, but maybe you have some other packaging, or other supplies and materials that you might need in order to actually provide that good or service. So remember, when you see supplies and materials, underneath the cost of goods sold, these are anything that again, is directly related, all right after our cost of goods sold going down the income statement. And I would love for you to actually go to QuickBooks right now, pull up your income statement. Or if you’re getting your financial statements from your bookkeeper or your accountant, you don’t actually pull them up and walk through your financial statements with me right now. That way you can actually see your numbers and get a sense for the flow of your profit and loss statement. This is one of the exercises that we do with our clients. When we review financials, we start from the top and work to the bottom of the income statement. And we do this every single month getting back to basics so that we always know our numbers. And we’re holding ourselves accountable to looking at this information to use it to grow. Next we have our gross profit, our gross profit is our revenue minus our cost of goods sold. And when you look at this number, it’s usually in two forms, it’s in dollar form. And then you can also create it into a percentage form. So the percentage is actually taking your gross profit divided by revenue. So sales minus cost of goods sold equals your gross profit. Your gross profit divided by your revenue is your gross margin. Now why do I want you to look at it in both numbers and dollars form because it is important to look at trends over time. Now as a business owner, it can be really easy to get stuck on looking at the dollar amount, we have one client who is sweet seeing an increase of $1,000 here and $1,000 There in their gross profit over time. However, when we made it as a percentage, we could see that that $1,000, although it sounded like a lot of money in their head, was actually a very small percentage over time. So by using percentages, we’re actually able to pull back as the CEO of our business and look at it from a higher level. So you’ll always hear me talk about percentages, because it’s an opportunity to pull back when I was working in corporate, I almost never used dollar changes when I was speaking to the CEO or to our board of directors, because it brought us into the weeds, right we were starting to look at really small dollar amounts. And when we pulled back and looked at things as a percentage of income or percent change, it enabled us to look at it from a higher picture, a higher level bird’s eye so that we’re only looking at the high numbers the higher the high percentage changes. And as a business owner, there’s a lot of mindset work that goes on here, right? You need to hear us talking about this podcast all the time about the mindset work involved in owning a business. Now, if you are constantly looking at the dollar changes rather than percentage, we can get really hung up. Because sometimes in our personal lives, we’re not spending as much money, right, we don’t have those big changes, we don’t have those expenses that are going out, we’re usually spending more money in our business life. And so it can catch us off guard when we see these changes. But when we look at it as a percentage of our revenue, or percent change over time, it can be an easier pill to swallow, if you will, all right. After our gross profit, we have our operating expenses. This is where a lot of our money, action and activity goes on for a business owner. So what are our operating expenses, these are all the costs that are incurred by your business that goes towards the general operations of your business. So it’s not the thing that they’re not the expenses that are going to directly serve your customer or your product. But all of the other things that you need in order to be able to serve your clients. It’s all the other things that you need in order to run your business. Let’s run through some of the breakdown of expenses under operating expenses at a high level. Now, when we work with our clients at kickstart, we use this strategic framework to restructure the income statement to help our clients better understand their financials. So under your operating expenses, you’ll have some other high level categories such as advertising and marketing, insurance fees, outside services, payroll, subscriptions, training, facility, and travels and meals and entertainment. I just want to give you some examples. So as you’re running down your profit and loss statement, you can see some of the ways that your operating expenses can be broken down. I don’t want anyone looking at that profit loss statement in alphabetical order, right? When you look at QuickBooks, and the way that QuickBooks sets up, the profit and loss statement generally gives you a template of your operating expenses listed as we just listed in alphabetical order. It’s really important that you work with your money team and your bookkeepers. to restructure that information so that it’s grouped together in a way, it’s going to help you quickly see where you are spending money, any goals, or opportunities for improvement, net income, this is the next area on the profit and loss statement. The net income of your business is calculated by taking the gross revenue, less cost of goods sold, minus all business related expenses, or better known now as operating expenses to bring you to your net income. Now, this number is so important to track over time because this number is indicating to you whether or not you’re profitable, are you losing money, or are you making money. So a loss means that you are losing money a profit means that you are taking home money and you have money to pay yourself as a business owner. And we want to watch these trends over time, both as $1 amount and a percentage of revenue. So we can identify what’s working, what’s not working any holes or any opportunities. I know I sound like a broken record sometimes. But it is so important repetition, AIDS and learning and I want you to understand what to do with your numbers. When you’re looking at this information. Hey podcast lovers, I hope you’re enjoying another amazing episode of entrepreneur money stories I had to interrupt to tell you about an exciting new tool we recently launched. If you’ve been wanting to learn how to start managing your business finances but don’t know where to start, then visit kickstart accounting to receive our new five day video bootcamp series, you will receive a video each day that will take you from accounting overwhelm to money powerhouse. So you’re ready go to kickstart accounting All right, that’s an episode. Next we have other expenses. Other expenses are known as in the accounting world is anything that’s under the EBIT dot line. So what is EBITDa? I know it sounds like I’m really speaking another language now. EBITda means earnings before interest. Depreciation, taxes and amortization and EBIT. Da is the number that is really, really important when you go to seek funding, or you’re working with a group of investors. And just because you’re not seeking funding right now, doesn’t mean you’re not going to in the future. So it was really important to understand what is considered your net income. Um, what’s below that EBIT dot line? So let’s dig into what some of these other expenses are. Other expenses can include depreciation, taxes paid for the business, and amortization. Those are a lot of accounting words. I don’t want to spend too much time here. So, talk to your CPA, if you are buying a lot of equipment for your business, or you have any assets that you are capitalizing on your balance sheet, then you will have depreciation. Again, talk to your tax accountant. But depreciation is simply an expense that’s taking a deduction or a loss of value in an asset over time. Generally, when we work with our clients, depreciation is a once a year journal entry that is used to move the value of an asset from your balance sheet onto your income statement over time, I don’t want to spend too much time on depreciation because this, again, we can do a whole podcast on depreciation, but I want you to have a general understanding. If you have a lot of equipment on your balance sheet or you’re purchasing a lot of equipment, I really want you to contact your money to talk to your bookkeeper to make sure that they’re being capitalized correctly. Talk to your CPA, your tax accountant to make sure that you’re recording that depreciation. And that’s it. That’s your income statement. I hope that this feels a little bit more digestible for you. Entrepreneurship is hard. Running a business is hard. Understanding your numbers doesn’t need to be as difficult, I want you to start to break down the barrier in your mind that you are not capable of understanding this information. Maybe you listen to this and this was enough for you, you can press pause and go to the balance sheet another day, you can rewind this and listen to it at a time where you can pull up your own profit and loss statement. And go through with me as we discuss what these terms mean. I promise you as accountants, we are not trying to confuse you. We are trying to do everything that we can to simplify this information so that you as a business owner, understand where you’re making money, and where you’re spending money so that you can better run your business. Next up, we’re going to talk about the balance sheet. Now, what is a balance sheet, a balance sheet is simply a summary of the financial balances of your business. It’s simply that it is a summary of your balances. Now, let’s go from the top to the bottom of the balance sheet. So take a minute to pause the podcast, I want you to go pull your balance sheet from QuickBooks or go to your email from your accounting team from your bookkeeping team and pull up your balance sheet. Now there’s different areas of the balance sheet. There are assets, so things that you own that are an asset to you. And then there are those liabilities. Liabilities mean that things that money that you owe to other people, so grouped under the asset accounts as your bank accounts. So these are considered a current asset. This will include PayPal, Venmo, checking accounts and any savings account that you have for your business. This does not include any accounts that you are using for your personal spending and income. These are simply your business checking accounts. When the balance sheet is sent to you at the end of each month or quarter. It includes the balances at the end of that period. The next current asset is your inventory. Inventory is simply a term that’s used to classify the assets a company has purchased to sell to their customers. Now, not every business is going to have inventory. Remember when we’re talking about cash versus accrual, if you do not have inventory on your balance sheet, don’t worry about it. You might not be selling any type of product, or you and your money team have agreed to use cash basis financials and therefore you do not use inventory. Another area that we see on the balance sheet for our clients is accounts receivable, also known as AR. Now this includes the invoices or sales that you have invoiced to a client in which the client has not paid yet. So you have invoiced your client and it is sitting as a bill outstanding to your client, they owe you money. So it’s considered an asset because it is an invoice in which a client is going to pay you in the future time. Now you could have other assets right, other assets might include a security deposit if you’re renting a space. It might include any machinery, equipment, computers, laptops, monitors, things that you’ve purchased for your business. If you have made the decision with your CPA to consider Are those an asset to be depreciated over time, you will also find those other assets on the balance sheet. Now, again, assets are good, it’s a great thing to have a strong asset base on your on your balance sheet, it means that you have enough money to save to pay your taxes at the end of the year that you have enough money saved in order to cover three months, six months worth of expenses, shall anything ever happen, say, a global pandemic. Now, let’s walk through the liabilities. Now, post pandemic, we see more of our clients have taken on liabilities than ever before, whether this is a good thing or a bad thing. I’ll reserve judgment, it’s for every business owner to make that decision for them themselves. Now, liability is money that you owe to other people. This might include accounts payable, accounts payable, another accounting term, but it’s just considered outstanding bills to pay other vendors or contractors in the future. So they sent you an invoice. And they said, Hey, don’t pay me yet, you have 30 days to pay me. So you’ve recorded that as an accounts payable on your balance sheet. So that you know in 30 days, you owe that vendor money. Not all of our clients use the accounts payable feature, a lot of our clients who are operating in the online space won’t actually have accounts payable because we’re spending we are doing business often on our credit cards as we are spending money. Speaking of credit cards, our next current liability is our credit card balances. So these are the balances showing the debt owed to your credit card companies. Now remember, these expenses for your credit card, when we purchase these items, were in a prior period they were in usually a month or maybe three 612 months earlier. So the expense is actually on your profit and loss statement. But the debt that you owe to your credit card company will sit on your balance sheet until you pay that money back. And this is a really healthy number to look at. Right, I want you to look at this on a very regular basis, I want you to know and understand how much you owe to your creditors. Because if we have a lot of cash sitting in the bank, and we are creating a profitable business, in order to continuously sustain the health of our business, we have to pay attention to the debt, we have to be paying back our vendors and our lenders. So next is our short term bank loans, payroll liabilities, and any other short term debt that you might be taking on our short term loans will include payroll liabilities and any other loan that we need to be, we need to be able to pay back in the next 12 months. So this is really important. Our payroll liabilities, if you’re using QuickBooks payroll, will sit on the balance sheet to be paid quarterly. If you’re using a system like gusto, don’t worry about it, they’re taking this liability out of your checking account as you move throughout the quarter. If you’re using a system like QuickBooks, they don’t actually remove that money from your bank account until the end of the quarter. And so that liability is sitting on your balance sheet until it is paid. So again, this is a future debt you’re going to need to be able to pay also might include your sales tax payable. So if you’re collecting sales tax from your customers, but you don’t actually pay them until the end of the quarter, this would be a really important number to look at, to know that you have enough cash sitting in your assets sitting on your balance sheet in order to be able to pay the short term loans. All right. Next, we have our long term loans. Our long term loans are where we’re seeing more of our clients have debt than ever before. This includes the SBA loans, or any other loan that is going to be able to be paid over a long period of time. So more than 12 months and more than one year. Again, this is really important to be looking at on a regular basis. If we are operating a healthy business in which we are consistently improving our profit and bringing cash into our business, it’s important that we are also honoring our debts and repaying our debts to either investors, our bank, the SBA, where whoever helps fund our business to help you get where you’re going, or where you are, it is important that we are being forward looking and looking at the debt in which we’re going to have to repay over the next few years. So this is a really important basic number to be looking at every single month. Now. I can hear you saying to me, you know I don’t want to look at that. Alright, it stresses me out. I know I owe money and I don’t want to be looking at it but how Are you going to plan for it, if you aren’t aware that it is there. So what I’m asking for you to do is do some self reflection, if it’s making you uncomfortable, understand why it’s making you uncomfortable, and get comfortable with being uncomfortable, right? It’s part of running a business. You know, I’m not soft around here, I believe that we started a business. And the day that we do that, we have a responsibility to be the best business owner that we possibly can. And in doing that, there’s a responsibility to be looking at our debts, planning for them, and understanding where our money is gonna go. The last area of our balance sheet is equity. Now, this can be a really confusing area. And so I’m going to keep it really simple. This is the the area of your financial statements that is recording your owner’s drawers. So not if you’re an S corp, and you’re paying yourself through payroll, you show up on your income statement, as an employee, but this is for any drawers, or distributions. Any drawers or distributions that are taken will show up as owners pay on the balance sheet, then we have personal expenses. So even our clients who are the best about keeping their business and their personal really separate, every once in a while it happens, we accidentally forget our credit card, we pull out the wrong credit card. I had one client email me and said, Hey, I had too many margaritas on vacation and paid with my business credit card. And we say don’t worry about it. We just classify those as personal expenses, it happens, don’t worry about it. I don’t want you doing it on a regular basis or making a habit out of it. But I understand that it happens. So when we see that as your money team, we put those expenses to personal expenses. Now, there’s a lot of reasons to pay attention to owners draw and, and personal expenses. This is how you get paid as a business owner. And so I want you to get paid if You are not a nonprofit, it is important that you are paying yourself. So by monitoring this number, by looking at this number every month or every quarter, you are ensuring that you are paying yourself enough now if you are an S corp and paying yourself through payroll, I want you to remember you cannot take more drawers than you are paying yourself through payroll. And so if you are taking personal expenses, as well as drawers, you need to monitor that that number does not exceed the number that you’re paying for by paying yourself through payroll. So we always have to watch the owner’s pay and personal expenses, and the last area is retained earnings. Now retained earnings is simply an accumulation of a company’s net income and net losses. over all the years that the business has been in operation. This number is accumulated over time, it is directly from your income statement and accumulates the profit or the loss that your business has had every single year that it has been in operation. If you want more information on how your balance sheet is set up, I encourage you to set up a time with your money team and discuss this with them and want you to go into detail. And you understand how much you’re paying yourself. How much you’re taking in personal expenses taught to your bookkeeper are the things that they have coded as personal expenses really personal? Is there anything that needs clarification? Sometimes as bookkeepers and accountants, we make assumptions, and those assumptions should always be evaluated on an ongoing basis. So a book that call review this information with your money team. I’m going to talk about one last statement and I don’t hear enough conversation about the cash flow statement that is a report that actually shows the inflow and outflow of cash in a business. Now, the cash flow statement is also known as the statement of cash flows. So you might hear those two terms interchangeably used but this is one of the three financial statements that we talked about at the beginning.

And this statement shows how the changes in the balance sheet and

The income affects cash. And it breaks down the

analysis into three areas operating investing and financing activities. Now, this statement can be very confusing, however, I love it because it really gives you the details about your spending. It helps you maintain the awesome cash balance that helps you focus on generating cash and is really really useful for short term planning. So when you look at your cash flow statement, you’ll have operating activities. The operation section of the Cash Flow Statement will show the company’s profitability. So if you are taking a long So, you’ll actually see that on the operating section of your cash flow statement. If you are profitable, you will see the operating side of your cash flow statement. Next we have our investment activities. These are things that we are purchasing, like big pieces of equipment, or making large investments in buildings, vehicles and lands. So a lot of our clients kickstart accounting, we actually don’t have a ton of investment activities on the cash flow statement. And that’s okay. Then we have our financial activities, the financial activities are the third and last section on the cash flow statement. And this reports to you the business owner, the cash flow between the company and its owners and creditors. So you will actually see if you have money coming in from investors or banks, this is where you’ll see that investment being recorded. And if you have any outgoing cash, you will see that information. So if you are making a large loan payment or credit card payment, you will see this information under the financing activities. So one of the questions that I hear a lot from our clients and fellow business owners is, I’m making money, and I see revenue coming in, I might even have a profit on my profit loss statement. But I don’t have any cash in the bank account. Where all the where’s the cash going? Where’s my cash flowing? This could be really concerning for a business owner. And if you have thought that, that question to yourself, I want you to talk over your cash flow statement or, again, phone call with your money team and talk about the cash flow statement because this statement will show you if you are repaying down debt, you’re not going to see that on the profit and loss statement, the only place that you’re going to see the payment to your debt or to your creditors is on your cash flow statement. It is a cash activity. You already had the expense on your profit and loss statement back when you incurred that back when you purchased those expenses. And so the cash activity that’s taking place today, as you repay that, the only place you’re gonna see that is on this cash flow statement. In your balance sheet, you’ll see the debt being reduced. Same thing with owners drawers and distribution. When you see those drawers and distributions, you have to remember that’s not on your income statement. That won’t be reflected there. And so it’s important to if you are feeling like you don’t have enough cash in your business, what is impacting your cash that is not impacting your profit and loss. And the best place to find that information is your cash flow statement. I know I’m tired, too. That was a lot. I know this was a long episode. Hopefully you could pause, take notes, go back, read, listen, listen to this and then use these terms to have a conversation with your money team. This podcast episode is made to be an evergreen episode that you can use to go back to revisit whenever you need to whenever you’re finding confusion on a term that is being used. And you want further clarification, we are here to help you, we’re here to be a resource for you. So I hope that this was really helpful.

If you need anything and you have any additional questions, I encourage you to come book a call, you can talk to the kickstart accounting team by going to kick start accounting book a call, or go to the homepage and there’s a pretty blue button over on the right hand side, both the call and have a conversation. If you are currently a client or you’re working with another bookkeeping firm or an accounting firm, I want you to book a call with your money team. They want to talk to you Well at least we want to talk to our clients about other accounts, but we want to talk to you. And the reason we want to talk to you is to help you understand this information. We don’t want to just be record keepers. We are here to help you understand the information. So if you are confused, or you’re feeling ashamed that you don’t understand this information, we provide a judgment free zone where you can come and ask these questions and say, Hey, I don’t know what questions to ask. I don’t know what I don’t understand. Walk me through it. Just want me there. Let’s have a conversation and see where the conversation goes. See what questions come up. So I encourage you to book a call with your money team. Don’t let this moment pass you by. I want you to press pause and Cotuit right now. Alright, if you enjoyed today’s episode, we ask you one thing. Please subscribe, like this episode, share it with one other person. Again, we’re here to be a resource for other business owners and that is how the algorithm will continue to share this with other business owners. And if you have any suggestions for a future podcast or any information that you’d like to hear, always email support at kickstart accounting. alright until next time

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