How to be Financially Conscious as an Entrepreneur | Henna Thode

Do you ever think about your relationship with money? Are you being financially conscious as an entrepreneur? We recently sat down with Henna Thodé of Hidden Financial Treasures. Henna has a lot of knowledge and experience in the finance department. She has worked as a Financial Controller, a Financial Director and now runs her own treasury and accounting company called HFT which stands for Hidden Financial Treasures. 

According to Henna, being financially conscious and having a positive relationship with money starts with knowing how to manage your daily cash flow. 

How? You need to know exactly how much you have to be earning in order to cover your monthly and personal expenses (such as gas, groceries etc.).

Here are 5 tips on how new entrepreneurs can have a positive relationship with money a.k.a being financially conscious. 

1. Keep track of your cash flow
In order for your business to grow, you need to know how to manage your money. You can easily keep track of your cash flow by creating an excel sheet. Qredits also has a template on their website that you can use (this one is a personal favorite of Henna, who likes to recommend this to her clients).

2. Know the basics of finance
You can hire an accountant to keep track of your finances, but it’s important that you understand what is going on in your business on a daily basis. There are many accounting programs you can sign up for or purchase online and some of these programs give very detailed information such as sales reports and monthly results.

3. Separate your personal and business bank account
It’s important to separate these two in order to keep track of your spendings. Avoid using your company card for personal transactions.

4. Follow ups!
No matter what type of industry you’re in, make sure you keep track of your incoming/outgoing payments and follow up with the clients who are late with payments.

5. Evaluate
Create a vision plan with your business goals and perform an evaluation at the end of the year to see if these goals have been reached and what you can improve for the following year.

Follow these tips, and you will be on the right path to being financially conscious. You should not be nervous when it comes to dealing with money (or your taxes for that matter). People get nervous at the thought of thinking about their finance, especially when it comes to matters with the Tax department, but there are lots of ways you can help yourself whether it’s by visiting the Tax department for information or take basic accounting courses, like from Balor for example., see the article on the basics of business here.

So, we have learned that being financially conscious is not difficult, you just have to invest time and good energy in the process and your success and happiness (financial happiness) will speak for itself.