Ep 32: Profit and Power: Why Avoiding Your Business Numbers Is Hurting You (And How to Fix It!)

This episode of She Busy is a must-listen for any entrepreneur who has ever felt overwhelmed by the numbers side of running a business. Host Assia Mahmood demystifies financials and shares why understanding your numbers is not just good practice—it’s essential for success. Tune in to discover how changing your mindset about money can transform your business and empower you as a leader. Whether you're a numbers newbie or just looking to refine your financial strategies, this episode will leave you feeling informed and inspired.

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Transcript

1:24

Hey there, I'm Asiya Mahmood. I'm an entrepreneur, children's book author, podcast host, speaker, mentor, mother, wife, sister, daughter, friend, and boss. And I'm here to take you behind the scenes of building a life you love while chasing big ambitious goals. On this podcast, we talk about business, personal growth, motherhood, and all of the messy, beautiful moments in between. If you're navigating the challenges of entrepreneurship, striving for whatever the heck balance means and determined to create success on your terms, you're in the right place. Because being highly ambitious shouldn't mean you have to sacrifice everything else that matters to you, and I'm on a mission to prove it. This is the SheBusy Podcast. Hello there. And welcome back to She Busy. It's the podcast that's all about empowering women entrepreneurs to build businesses and lives they absolutely love. I'm your host, Assia Mahmood. And first off, I just wanted to thank everyone who reached out about my husband and about everything that had been going on that I talked about in my last podcast episode. I really appreciate you guys listening. First off to my episodes and to also be reaching out. My husband is doing much better and is Able to resume most of his duties. We are lucky he did not break anything and he is back to almost probably 90%, which is great. And we are so grateful, but today we're going to be diving into a topic that might make some of you a little uncomfortable, but it's. Absolutely crucial for your success, and that is understanding your numbers in business. And now I get it. Look, when I started out, I didn't love dealing with financials either. I felt that it was intimidating, it was overwhelming, and it was honestly just something that I wanted to avoid. It made me feel insecure or incapable, and it was heavy. It was like, it was highlighting my imposter syndrome. But, the thing is, ignoring your numbers is a Big mistake, huge. And today I'm going to tell you why that mindset is holding you back, how it can actually catapult your growth and how to fix it. So if the thought of bookkeeping makes you cringe, or you feel like you're just not a numbers person, don't go anywhere. This episode is for you. So let's get into it. Okay. Now we're going to start with the uncomfortable truth. And that is that too many female entrepreneurs are running their businesses like hobbies because they don't truly understand their numbers. And look, I get it. The financial side of things can be confusing or boring or even scary, frightening, and you might think, well, maybe I've got money in the bank, so I must be doing okay, but here's the problem. Your gut feeling is not a financial strategy, and numbers don't lie. And if you're not tracking them or understanding them, you're flying blind. And I don't know about you, but I would prefer not to fly blind. And I'll be honest, I used to avoid my financials like the plague. I thought, I know where I stand, I don't need to get into all those details, but that's not running a business, that's guessing. And in business, guessing is going to cost you Big time. You have to treat your business like a business and not a hobby. And here's the shift that changed everything for me. I stopped looking at financials as just numbers and I started seeing them as the actual story of my business. The numbers show you what's working, what's not, and where you can grow. And knowing your numbers can and will increase your bottom line. And the thing is, you don't have to do it alone and you really shouldn't. And that gets me into my next point, which is, let me tell you how I have approached my financials. And that is that I have a CPA who handles my bookkeeping and my taxes, and I have a monthly CFO meeting to go over with her where my business stands. And this has been a game changer. So if you're thinking, I can't afford to see a CPA let me break it down for you. Because a good financial professional isn't just an expense. They're an actual investment in your business. Please don't look at it as just something you're spending money on. This is a true investment and a necessary one. If you're going to run a truly successful business, they help you find ways to save money, grow your profit margins, and to avoid costly mistakes. They give you clarity and confidence to make decisions. And that's if you find a good one. So that part of the process is so huge. On making sure that you are finding someone who is not just a tax preparer that you talk to once a year, but a true partner in your business. So when you're looking for a CPA or bookkeeper, here's what I recommend to look for. And number one is proactivity, right? Are they bringing you insights and advice throughout the year or are they just crunching numbers for tax season? Are they giving you something substantial that you can work with? And number two is communication. Do they explain things clearly or are they just using jargon that goes over your head and you're intimidated? You don't really know what questions to ask because sometimes that happens in these kinds of financial conversations, especially if we're not comfortable with numbers. And number three is alignment with your goals. Do they take the time to actually understand your business, understand your vision and what's important to you? I remember when I first started working with my current CPA, she asked me what my. Personal goal was, and my personal goal was to be able to take a 10 year anniversary trip with my husband. And my goal was Greece. And we set that at the beginning of my business. And that was years before my 10 year anniversary. And I loved that because it gave us something to look forward to. And we would come back to it and say, are we there yet? And guess what? I got to take a 10 year anniversary trip with my husband to Tokyo. And it was incredible. So making sure that your CPA is working with you on that level is so important. And number four is credentials and experience. Make sure they're licensed and experienced and have worked with businesses like your business. My CPA is someone who has worked with businesses that are similar to my business. And so they understand what my industry is like and what my KPI should be. CPA or bookkeeper will feel like an extension of your team, and you shouldn't dread meeting with them. You should leave those conversations feeling empowered and informed, even if things aren't going exactly where you want them to go or where you need them to go. Going over your numbers and going over your statements with a CPA who's invested in your growth and in your success makes it go so much farther. Because they're going over with you how to get to growth. It shouldn't be something that feels embarrassing or something that makes you feel less than it is actual physical, tangible evidence of what can be done to grow your business. But one of the big things too, as always in everything is mindset. So now let's switch gears for a second and talk about mindset. Because if you feel like financials are intimidating or you're not a numbers person, I hear you, but let me tell you something. That story you're telling yourself is not serving you. And the truth is that nothing bad happens when women make more money. And I'll say it louder for the people in the back, that nothing bad happens when peop when women And I'll say it louder for the people in the back, but nothing bad happens when women make more money. In fact, when women are profitable, we invest more in our families, in our communities, and in causes that we care about. So let's stop shying away from profitability and start embracing it. So here's a few mindset shifts that will work for you and have worked for me in the past. And those are number one, think of money as a tool and not a goal, right? Your revenue and profit are tools to help you build the life you want to help you grow your business and create impact. This takes the emotional weight out of those numbers. And number two is celebrate the small wins. If diving into your financials feels scary, start small. Look at one thing, which could be your revenue for the past month, for example, and celebrate that step forward. Number three, set clear financial goals. Whether it's increasing your profit margins, paying yourself more, or hitting a certain revenue milestone, knowing what your goals are will help you stay focused. And remember, number four is remember you are not alone. Lean on your financial team. If something doesn't make sense, ask questions. Nobody expects you to know everything. This is why you have a team to support you. This is why you should build a team to support you. Because you should be asking these questions, making sense of them, and using that information to grow and to scale. Okay, now that we've gotten that fun mindset conversation out of the way, let's get into some actionable tips to help you get a better handle on your financials. And number one is to set a monthly finance date, schedule a time every month to sit down and review your numbers. This ideally would be with your CPA slash CFO, or even just you in a notebook, but make it a non negotiable. Make it a non negotiable. Something that you must do. Your business cannot move forward or grow without it. So again, make it a non negotiable. Number two is use a software to simplify. Of course tools like QuickBooks are out there, which is what I use and what my bookkeepers use. But again, The tools are there for you to be able to utilize in a sense of going over your numbers. I highly recommend because a lot of them will integrate with your accounts and stuff, but I highly recommend allowing your CPA to handle the QuickBooks and you having it as a tool that you can use to review. And number three, track key metrics at a minimum you have to know your revenue, your expenses, your profit and your cashflow. And then you also want to be making sure that you understand what KPIs you should be tracking for your specific industry. And if you don't know where to start, your CPA can help you figure out what metrics matter most for your business. Number four, ask for reports. Your bookkeeper or CPA should be giving you monthly or at the very least quarterly reports. I get them monthly. I'm really big on that. Don't just file them away. Take time to review and ask questions if something doesn't make sense. Go through each item line by line. My CPA and I sit down every month on a pre scheduled meeting that we already have on the calendar. Remember it's non negotiable and we go through each. Line item on the P& L to make sure everything makes sense or if things need to be recategorized or if maybe we realize that we spent more in one area than we Anticipated we go through all these things to understand and so they are creating these reports for me monthly and we are meeting Monthly. And number five is keep learning. If you're serious about growing your business, scaling your business, of becoming a serious entrepreneur, then take the time to learn the basics of business finances. There are a ton of free resources out there that can help you get started. And I'm actually a big proponent of knowing my financials because it has been a huge game changer for me. So if you haven't realized that that's something that I'm, I'm big on, I am telling you now it has been a huge game changer for me. It has helped me to Increased my profitability. It has helped me to increase my revenue. It has helped me to understand where my expenses can be. increase, decrease what I should be doing with my money in order to make more profit. And so now I'm actually, I've done so much on the job training now that I decided it was time to understand the theory behind business financials. If I want to actually reach those big audacious, but what is it? Big, hairy, audacious goals that I've set for myself in the longterm. So I actually started a course just a few weeks ago with Harvard Business School Online called financial accounting. And it has been So that is, there is a charge for that one, but I want to just kind of go all in and learn it. But there are plenty of free resources out there. So if you want to know some of the free resources I recommend, just reach out and we can chat about it. But anyway, let's wrap this up, right? Here's the bottom line. Understanding your numbers is not optional if you want to run a successful business. It's not just about making money, of course, but it's about knowing how to use your money to grow, to make an impact and to build a life you love. You got into business for a reason and more than likely as a female entrepreneur, you got into business to make an impact, to create a legacy, to solve a problem, something that's bigger than yourself, but you also got into it because you knew that providing that service or providing that product or providing whatever it is you are solving that problem. You could make money off of it. That was the goal. So don't shy away from understanding your financials. And if you're overwhelmed by your financials, take a deep breath, start small, just start looking for a good CPA or a bookkeeper to get on your team. And if you already have one, talk to them about scheduling your monthly CFO style meeting. Because again, I'm going to say it again, remember that nothing bad happens when women make more money. And as always, I hope this episode gave you some clarity and some confidence. If you love this episode, make sure to subscribe, leave a review and share it with fellow busy entrepreneurs who need to hear this. And until next time. Thank you for tuning in to the she busy podcast. I hope you enjoyed today's episode for more inspiration strategies and support on your journey to freedom and success. Make sure to hit the subscribe button, follow me on social media and visit my website. All the links are in the show notes and remember you have the power to create the life and business you've always dreamed of, but it won't happen on accident. Here's to your success and freedom. Until next time.