Financial literacy is important for everyone but it’s essential if you’re in business.
Most businesses fail due to lack of cash, not profits
One definition of financial literacy is “The ability to make informed judgements and decisions regarding the use and management of money”.
For business, it is understanding where your money is coming from and where it is going. It’s also knowing how to use this information to make informed decisions, resulting in better outcomes.
So, it’s crucial you understand your cash flow and keep an eye on it every day.
Our purpose at Xero is to help make life better for people in business. So I want to highlight three tips for new business owners.
A bank reconciliation ensures all your bank transactions are recorded and categorised in your business’ accounting system.
If performed daily, or at least weekly, you’ll have an accurate and