April is Financial Literacy Month
April 29 – Understanding your business’ financial position is the MOST important part of your daily activities. While accounting is NOT the strongest skill most entrepreneurs possess, it is the lifeblood of your organization. Cash flow, budget projections, profit and loss, payroll deductions and everything else related to your business is the reason that every business owner should make financial literacy a priority. You do not have to earn a degree or pass a Certified Professional Accountant (CPA) exam to build the solid knowledge about finances, but you can communicate with a financial professional. The Forbes Finance Council recommends these strategies to be successful in your business and business financial planning:
- Prioritize and Plan for “what happens” should something happen to you.
- Develop a “financial” team to include and ASK them detailed questions:
- A financial advisor
- An attorney
- An insurance agent (business, liability, and life)
- Focus on the CASH FLOW STATEMENT to know where the money is coming from, where it is going and how much is being generate.
- Understand debits, credits, and basic accounting
- Track your account daily-weekly, NOT once a year at tax time
- Take a basic accounting course. (See SBA.GOV or contact your local SBDC office)
The importance of financial literacy is widely known and has been for a very long time. State Representative Vikki Goodwin of Austin has introduced a Bill that will require financial literacy courses to become mandatory for all Texas high school students. The curriculum will include materials from the Federal Reserve Bank and is being reviewed by the Texas Education Agency. It is being considered the new social studies course for Texas.
According to www.smallbiztrends.com the most profitable small businesses for 2018-2019 are:
- Tax Preparation and Bookkeeping
- Catering Services
- Website Design
- Business Consulting
- Courier Services
- Mobile Salon Services (hair and nails)
- Cleaning Services
- Online tutoring
- Real Estate Broker-Agent
- Personal Training
This work was supported by the USDA National Institute of Food and Agriculture, 1890 Extension Formula Program projects under Section 1444.
Phyllis R. Varnon
Community Economic Development
Extension Agent for Zavala, Dimmit and Uvalde Counties