Understanding your numbers might not be as exciting as launching a new product or connecting with customers, but it’s one of the most important parts of running a successful business.
Your financials can tell you:
- How to price your products and services
- Where to streamline operations
- How to create stable income for yourself
- How to survive during challenging times
If you can “speak the language” of your bookkeeper and accountant, you’ll be able to ask the right questions and guide them to provide the information you need to make better decisions.
And here’s the good news: understanding your financials is easier than you think.
If you get stuck, our Business Strategists can provide one-on-one support.
Financial Fundamentals Checklist
Each of these steps includes a free guide, worksheet, or tool to help you build your financial confidence.
1. Learn the Lingo
Do you know the difference between fixed and variable costs, what a cash flow projection is, or how to read a profit and loss analysis?
- Yes: You’re already speaking the language.
- No: Check out our Guide to Financial Terms
2. Price Your Products and Services
A breakeven analysis will help you set prices that keep your business profitable.
- Yes: You’ve got your pricing under control.
- No: Learn More about Breakeven Analysis
3. Separate Personal and Business Budgets
You need to know your personal budget and plan a realistic business budget.
- Yes: You’re clear on what’s personal and what’s business.
- No: Try the Government of Canada’s Interactive Budget Planner
4. Understand Financial Statements
An income statement and balance sheet are essential for tracking performance and securing funding.
- Yes: You’re confident reading your statements.
- No: Learn more – Financial Statements 101
5. Use Ratios to Improve Performance
Financial ratios can help you identify strengths, weaknesses, and areas for improvement.
- Yes: You know how to calculate and use them.
- No: Learn from BDC’s Guide to Ratios
6. Choose the Right Accounting Software
The right tools will make record-keeping easier and more accurate.
- Yes: You’re already using accounting software.
- No: Check out our Guide to Accounting Software
7. Understand Cash Flow Statements
Lenders pay close attention to your cash flow statement — and so should you.
- Yes: You know how to use it for planning.
- No: Download our Cash Flow Template and explore our Interactive Business Plan Builder
8. Work with the Right Accountant or Bookkeeper
A good accountant will answer your questions, keep your records in order, and help you make smart decisions.
- Yes: You have a great financial partner.
- No: Learn more with our Hiring an Accountant Guide
Ready to Take Control of Your Finances?
Understanding your financials will make your business stronger — and you don’t have to do it alone. Our team is here to help.