A chat about entrepreneurs and their numbers with Chris Edwards
EPISODE 99
Notes
Numbers can be scary, but they are not our enemies. As entrepreneurs, numbers can be some of our strongest allies, providing us with a wealth of information to pave the wave to success.
My guest today is Chris Edwards, an entrepreneur who has founded multiple successful businesses, and we share a conversation about the importance of numbers for entrepreneurs. Chris shares valuable insights about her approach to managing finances, the importance of building a strong financial foundation, and the lessons she has learned along her journey.
Learning from Mistakes:
As many business owners are tempted to do, Chris tried to manage her own books when she began. Despite having a commerce degree and accounting knowledge, it was harder than she expected, and she ended up making costly mistakes. Chris encourages entrepreneurs to learn from her experience and emphasises the need to seek expert help early on to avoid such setbacks.
Choosing the Right Accounting Software:
Chris shares her experience using invoicing software when she started out in business. It was helpful, but insufficient for managing the finances of her business. She then transitioned to using Xero, which provides her with more comprehensive tools for tracking revenue, expenses, and financial performance. She even has separate Xero accounts for each of her ventures, allowing for a clear and accurate overview of each business's financial performance.
The Power of a Well-structured Chart of Accounts:
We also discuss the value of having a well-structured chart of accounts. While it may be tempting to create account codes for every little expense, Chris recommends consolidating and grouping expenses into meaningful categories. This allows for a clear and concise overview of financial metrics, making it easier to identify trends and potential areas for improvement.
Overcoming the Fear of Numbers:
There’s a common mindset Chris has observed over her years working with entrepreneurs, one of fear and negativity surrounding numbers. Many business owners express discomfort or even avoid dealing with financial matters, often citing a lack of confidence or math skills. She shares her personal journey in overcoming this fear and embracing numbers as allies. Chris encourages entrepreneurs to lean into their numbers, seek help from professionals, and develop a positive association with financial metrics.
Chris has a wealth of experience juggling various ventures and she’s learnt the importance of her numbers the hard way. By picking up on her missteps, tapping into accounting tools, and staying organized with your finances, you can set your business up for success.
So, whether you're at the beginning of your entrepreneurial journey or looking to level up your financial management skills, remember that numbers are your ally, not your enemy.
Where to Find Chris:
Instagram: @Chris_Edwards_AU
LinkedIn: chrisedwardshoneycombers
LINKS:
Register your interest in the Bookkeeping it Real Mentoring Program here.
About the
Author
Bec is a chartered accountant who worked at Australia’s big firms and banks for 15-years. Faced at a crossroads in her career, she backed herself, left her corporate job and launched Straight Up Bookkeeping. 3 years and 5 staff later, Straight Up Bookkeeping is one of Australia’s leading virtual bookkeeping businesses for creatives, with a mission to free business owners from financial stress so they can grow their empires.
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