A burning question that small business owners have is "When will we actually make money and start to see a profit?" One way to determine this is by finding your company's break-even point.

▶ (Break-even point) 500 widgets = (total fixed costs) $1,000 / (sales price per unit) $2 This means once you've sold 500 widgets, you'll have covered all your costs and will start making a profit!

(1/5) Having a clear and organized system for tracking financial transactions is crucial. One way to achieve this is through a chart of accounts.

(3/5) It's essential to have a clear and concise chart of accounts to easily understand your financial statements. Without one, it becomes challenging to manage your finances effectively.

(1/5) "How to determine if I have enough funds to hire a new team member?" This is a common question we get from small business owners. Here are some factors to consider when making this decision:

(4/5) 🔸 What are your average monthly expenses? How much cash do you have in the bank? Our goal is to maintain 1-2 months of expenses (runway) in the bank to avoid financial stress. Under 1 month and you start becoming heavily dependent on revenue coming in the door.

(1/8) As a business owner, have you ever said: "I made $X in Net Profit but I don’t know where it went!"? You're not alone. It's not just about what you make, it's about what you keep.

(7/8) Check out our Free Revenue and Profitability Calculator to help you determine what it will take to build a financially sustainable business. #financialhealth #smallbusiness