How important is it to understand basic financial concepts?

Dave

Not important at all…OK, so that’s a lie! That’s what I thought when I first set-up in business, but it soon became apparent that not knowing the basics about financial concepts would limit the growth of the business. We’ve all heard that Cash is King and that Cashflow is the killer of most businesses, well it’s true, and without a basic understanding of your finances it’s simply impossible to have a true grasp of your cashflow.

Jacqui

Incredibly important – has an impact across the whole of your life – to be able to manage your finances – both personally and professionally. Being ‘money savvy’ can make a huge difference in your life – ensuring there is sufficient income to cover expenses – essential bills are paid, there is money to cover extra unexpected expenses that need to be paid, and maybe some left over to be saved up or spent on treats. Allows financial prudence, and hence peace of mind.

Julia

It’s essential – too many start-ups go under because the business owner lacks a basic knowledge of the nuts and bolts of accounts. It’s really tragic to see great ideas fail because of this. You don’t have to be an expert – that’s what accountants are for – but you DO have to know where your hard-earned money is going. If you can manage your income and expenditure well you give your business the best chance of achieving its potential.