Episode 84: Why You Need to Fall in Love With Your Numbers

 

25% of people would rather get a root canal than visit their Accountant, according to research out of the US. 

In episode 84 of The Business Habitat podcast, Sam explores why this is the case. Are Accountants bad people? Or is it more the reason that numbers tell a story and oftentimes it’s easier to ignore the facts than to deal with the situation head on. But ignorance comes at a cost. 

There are many reasons why people, especially non-accountants, might choose to avoid close examination of their financial statements. Some might think that numbers are hard, or you need to be good at Maths, or even have an Accounting degree.  Yet that’s not the case. Even with her strong Accounting background, Sam shares in this podcast her own experience of distancing herself from her numbers and delves into why that happened and the consequences of doing so. 

One thing that all businesses have in common is that they involve numbers. There’s really no avoiding them, and trying to will actually cause more stress and fatigue than being educated on them. Sam discusses the importance of not only understanding your numbers and the underlying metrics that drive them, but learning to love them, and the story that they tell.  

Listen to an excerpt

 What we cover in this episode 

  • Our love/hate relationship with numbers 

  • Working management accounts vs “moment in time” financial accounts

  • Connection between knowing your numbers and reducing fatigue 

  • What’s holding us back from loving numbers

  • Sam’s tips to increase your knowledge of numbers 

Quotes

“It’s a really important element of our businesses, and everybody that has a business needs numbers and we really have to actually look at the value of them and the mechanisms that drives them“

“We look at financial statements as a moment in time, but we don’t look at the numbers that drive them”

“Every business has financial statements, and has requirements from a tax obligation etc, but we don’t spend a lot of time educating ourselves or our teams on basic financial literacy“

“If you want to feel less fatigued and stressed, this is one area to help you grow your knowledge”

“The clearer you are with your numbers and the strategy around them, and what drives them, the more clarity actually attracts money. Clarity around numbers attracts money, so you need to get educated in this”

Links mentioned 

Episode 68 - Using Technology to Build a Business Life You Will Love, with Ryan Lazanis 

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Episode 85: People Centred Success Metrics are Key to Getting Results

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Episode 83: We All Do Better Together with Matt Kreis