Data suggests that, if there were a definitive list of common fears, money would sit firmly at the top (above spiders, weight gain, and even dying). At face value, money is just a number on the bottom line, but we all know it stands for much more. As a business owner, you can feel exponentially more anxious than a typical individual when it comes to managing finances. Not only are you fiduciarily responsible for your personal or family’s livelihood, but also the livelihood of your business, co-founders, employees, investors, etc.
At inDinero we see many business owners who have fallen to this added pressure because they either a) got into the weeds of managing the books themselves without experience handling business financialsor b) avoided their financials altogether until it bled into the rest of their business or their personal life. If you ask our founders, you’ll find this is exactly where the idea for inDinero originated. Entrepreneurs needed a modern solution to handle these tedious and intimidating tasks: accounting and taxes.
We exist because bookkeeping isn’t exciting for entrepreneurs, but it can be empowering. Since our beginnings as a startup (just like you), we’ve come across a few different ways business owners can swap their financial fears for financial confidence.
Here are our top three tips for building a healthy relationship with your money:
1. Compartmentalize the Emotions of Monetary Risk
Money affects everything from our ability to access our most basic human needs to our social status and professional success, all of which directly impacts our overall psychological health. But mistakes or setbacks do not have to be the end of the world when handled with care. Which is why it’s crucial for your sanity that you find ways to separate the reality of a risk from the emotion of fear.
“[Financial uncertainty] can be scary. Over time, you get better at compartmentalizing the risk and thinking logically rather than emotionally about it. But certainly, that first phase is the most daunting.”
Both being afraid of losing your life savings or running your business into the ground because of a monetary decision are similar to being scared of dying in a plane crash. Except, unlike a plane crash, it isn’t life and death—it’s just money. And if there’s anything entrepreneurs know inherently, it’s that there is always more money to be made.
2. Think of Money as Your Currency for Getting Sh*t Done
Money itself is a human social construct. At one point in time, we traded seashells. In this day and age, we’ve assigned value to pieces of paper or metal coins as a means of trade. But it has always been about trading something in exchange for value. Somewhere down the line, the currency crept ahead of the end goal it’s used to attain.
Money is never the end goal for your business or your life—but what money can buy is what you’re striving to achieve. Whether that be tangible things like an office for your business or a house for your family, a fancy car, a new computer, etc. or intangible things like power, authority, or freedom—money plays a part in acquiring the things you want or need to feel fulfilled.
What’s the best way to take power out of money itself? Be goal-oriented, but not around a dollar amount. Never let the goal of earning, raising, or borrowing an amount of money blind you from what you want to achieve with it. Make money the vehicle for getting you there. Money can be a roadblock or a catalyst.
3. Make Monitoring Your Finances Easy
Being responsible with your money does require some management and oversight—but that doesn’t mean it needs to be stressful. When building your business’s financial policies, look for solutions that offer minimal effort on your part and maximum transparency of KPIs. Reports need to be intelligible (the less accounting minutiae, the better) and readily available. Even if you’re a finance aficionado, as a business owner, you’ll want to limit the time you spend on data entry.
Reducing manual data entry is one of the most notable benefits of using inDinero, according to startup founders who have a background in finance and accounting. Co-Founder & CEO of SnapSuits, Ryan Leahy recently shared how his role has shifted from being responsible for all the operational heavy lifting to a more strategic mindset now that inDinero handles the books.
“It's great to have the data in real time. For the first two years, I had to collect data, move things around, and build charts manually anytime we wanted a report. Now, it's quick and painless with all that data ready to go.” - Ryan Leahy, SnapSuits
What are your goals for your business?
Ultimately, starting a business means getting comfortable talking about money. If not every day, then on a regular monthly, quarterly, or annual basis. But those conversations about target revenue or fundraising should revolve around goals, milestones, or achievements. If you can keep that focus on using money to manifest those goals into the future of your company, financials won’t feel like a source of stress and anxiety.
inDinero is here to help.
inDinero isn’t a traditional accounting or tax firm. We give startups access to a full finance team that has overseen thousands of companies. We’ve built an accounting software for entrepreneurs by entrepreneurs to help streamline day-to-day financial tasks and help founders make more informed decisions.
Ready to outsource your business’s accounting and taxes to inDinero?