By Nacondra Moran
What would your business say if it could talk?
Running a business can often feel like a whirlwind of activities – booking sales calls, running ads for a new offer, responding to client emails, updating your website, keeping your books in order… But when was the last time you paid attention to what your business is telling you?
As a business owner, I face the same challenges as you do. But as an accountant, I’ve come to realize that our businesses are telling us a lot more than we might be aware of.
That’s right. Bookkeeping is not just about tax compliance or maintaining perfectly balanced spreadsheets. It’s about clarity. Your financial records contain a lot more information about your business than you might think. Your books tell a story – one that reflects your habits, your growth areas, and your vulnerabilities.
The question is: are you paying attention?
In this article, we delve into the three important signals your books might be sending you, and how to review and respond to build a healthier, more resilient business.
- Your numbers reflect your patterns, not just your profits.
On the outside your business might look like it’s thriving. The polished website, the curated reels, the client wins. All of it can paint a picture of success.
But how is it really going beneath the surface
Are you overspending without even realizing it
Has it been a while since you gave yourself a raise
Are you still not paying yourself consistently even though money is coming in
Or maybe you are caught in that cycle that so many of us know too well. One month is full of clients and momentum. The next feels quiet and uncertain. Feast then famine. Hustle then hope.
It does not have to feel like this.
Sometimes the shift starts by looking honestly at your numbers, your habits, and the systems holding everything together. That is where the clarity comes in.
Believe it or not, all this shows up in your books. And your Profit & Loss Statement (P&L) doesn’t lie.
It is more than just a simple report that answers the question did we make money this month. The P & L is a reflection of how money is moving in and out of your business. When you look at it alongside your balance sheet and cash flow statement, patterns start to emerge. Especially when you track it over time.
Because our financial patterns often mirror emotional ones, we can start noticing certain indicators of the health of our business (and our mindset as business owners). Things like pricing too low because you are tired or stretched thin. Overspending to feel more official. Underinvesting because fear is driving the decision.
These things show up in your numbers long before the IRS ever sees your return. You just have to be paying attention.
- Your books tell you when it’s time to pivot.
Part of the challenge of running a business is navigating complex and dynamic landscapes. Changes in the political climate, fluctuating market trends, shifts in the economic context – as an entrepreneur, you have to be ready to meet these challenges head-on. And sometimes, that means making pivots in your business.
But how do you determine the right time to pivot? Your financials hold the key.
One of the hardest parts of running a business is learning how to move with change. The economy shifts. The market slows down. Politics or partnerships or client behavior changes. And suddenly what was working before does not feel as aligned anymore. When profit margins shrink, revenue dips, or expenses quietly creep up, your books are sending you a signal that it might be time for a change.
That’s why it is critical to keep your finger on the pulse of your business’s financials. It will help you understand the ebbs and flows of your business, and you are so attuned to what is normal in your business that you can quickly react when things shift. Staying on top of your bookkeeping puts you in an advantageous position to respond and adapt to new challenges and opportunities that your business may face.
- Your financials reveal your values.
When it comes to your business, do you walk the talk or are you all talk, no action? You say you value professional development but when was the last time you invested in upskilling for yourself or your team? On social media, you’re an advocate for fair compensation, but are you paying yourself well for the work you put into your business? You believe in saving for a rainy day, but is your business savings account woefully empty?
You’re not alone, and it might be time to start looking at where your money goes — not just where it comes from.
You might not think so, but your books are a clear reflection of the choices you make. And every choice you make reveals what you care about, even if (perhaps even especially because) those choices may not be conscious.
Reviewing your books to see what you are spending money on can provide insights about what you value and prioritize, even if it does not align with your perception of your values. Again, the numbers do not lie!
If you find that where your money is going is not coherent with what you value, don’t panic! The good news is that change starts with awareness. Becoming aware that your spending is in alignment with your values can help you make the shift towards more mindful and aligned expenses.
Ready to listen to what your books are telling you?
It is abundantly clear that your books have a story to tell – if you are willing to listen.
It could be something simple like “It’s time to raise your prices.” or “You’ve outgrown this offer.” It could also reveal a mismatch between your actions (how you are spending your money) and your values.It could point to deeper work you need to do on your mindset or letting go of fears.
On the other hand, your books could also tell you “You’re doing just fine — stop panicking.”
Whatever the story, it’s undeniable that your numbers are more than just inputs for a tax return. They’re a map that tracks your progress and past decisions. But they’re also a compass that can guide you in your strategy going forward.
The important thing is taking the time to look at your numbers and uncover the story they’re trying to tell.
If you’ve been avoiding looking at your books, consider this your gentle nudge. You can start small. Block out a few hours or one day a month to focus on your books. Set up a comfortable and welcoming space. Perhaps even light a candle or prepare your favorite beverage. Then, open up your accounting spreadsheet or software. Ask your business what it’s trying to tell you. And listen.
You might be surprised by what you hear.
Feeling overwhelmed even by the simple thought of looking at your books or don’t know where to start? Exceptional Tax Services can help. Our Bookkeeping Essentials Package will take care of your numbers so you can focus on understanding what they’re telling you. With monthly financial statements delivered direct to your inbox and unlimited email support, this is just the package for creative entrepreneurs and service-based businesses looking to take control of their books.
Book a call to find out more about how we can support you in making the right decisions for your business.
Nacondra Moran is the Founder and CEO of Exceptional Tax Services (ETS), a tax and bookkeeping firm known for simplifying complex financial matters for small business owners. Drawing on over four years of experience with the IRS, Nacondra founded ETS in 2016 with a focus on delivering personalized solutions that help entrepreneurs navigate their financial responsibilities with confidence. Her hands-on approach ensures that clients not only meet their tax obligations but also gain clarity and control over their business finances, fostering long-term success.
