One of the things we’ve noticed among business owners, incorporated professionals, and entrepreneurs is that they often don’t know where the cash flow in their business is going. But just because this scenario is common doesn’t mean that it’s acceptable.
Imagine you are the Chief Financial Officer of your financial situation, and we come to you and ask you how much money you spent last year and where it all went. Would you know exactly where that money was allocated?
If you’re not clear about your cash flow, you’re likely not allocating your money to the things that are the most important and spark joy, or accomplishing those bigger-picture financial goals. You might even be using a significant portion of your cash flow for instant gratification. You might also be paying too much tax because oftentimes, you’re taking money out of your corporation that doesn’t actually need to be taken out of your corporation.