35 | Are Your Business Finances the Neglected Stepchild? with Carla Moats

Are your business finances the neglected stepchild?

My guest this week, Carla Moats, and I discuss the common neglect
of finances in the coaching space, where revenue takes
precedence, and profit becomes an afterthought. Carla emphasizes
the importance of financial knowledge for small business owners,
especially in coaching, to overcome the fear and intimidation
associated with numbers.


Do you want to improve your business's financial management and
increase profitability? Learn how to achieve better financial
control and organize your business finances for increased success
and stability.


Empower your small business's financial future as Carla
dismantles the profit paradox, guiding you through the crucial
steps to separate, track, and prioritize your revenue to maximize
your company's success.
In this episode...

Carla stresses the importance of tracking revenue and
expenses monthly and highlights the common oversight in the
coaching space where many are unaware of their profit until
year-end tax consultations.

Carla suggests various tools for financial tracking, ranging
from QuickBooks and Xero for larger businesses to spreadsheets,
Wave, YNAB and HoneyBook for simpler needs but ultimately
emphasizes the need for a system that records both income and
expenses for accurate financial insights.

We discuss the significance of setting profit goals for
coaches and small business owners and encourage everyone to
take an intentional approach to spending and investments,
emphasizing the practice of deciding upfront how much profit to
take.

Carla advises business owners to assess their financial
health regularly, considering factors like profit, cash flow, and
personal income by implementing a monthly finance hour, either
self-led or with a bookkeeper, to review financial statements and
understand key financial metrics to guide their strategic
planning.

She recommends identifying 5 to 7 KPIs that directly impact
revenue and expenses, tailored to the specific business model,
highlighting the value of tracking KPIs alongside financial
metrics to gain a comprehensive view of business performance.

We conclude the episode by discussing the importance of
having a mindset shift toward intentional spending and investment
decisions.



Carla is a fractional CFO and financial and money coach for
female coaches and other service business owners who are making
money, but not keeping enough. She brings her 30+ years of
finance and accounting experience to her clients, helping them
understand their numbers and become profitable so they can scale
profitably and still have the money to live the lifestyle they
dream of.


Don't wait for your tax guy to tell you how much you're making.
You should know every month how much money came in, how much
money went out. - Carla Moats
The key moments in this episode are:

00:00 - Neglecting Business Finances 07:53 - Organizing Business
Finances 10:39 - Financial Tracking Tools 14:37 - Hiring a
Bookkeeper and Understanding Financial Statements 16:51 - Setting
Profit Goals and Paying Yourself 18:54 - Profit First Principle
and Intentional Investments 23:23 - Intentional Spending and
Personal Financial Goals 27:29 - Business Expenses and Costs
29:08 - Key Performance Indicators (KPIs) 30:20 - Importance of
Bookkeeping


 


Click here for the full transcript, notes, links, and more.


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