Why You Need to Know Your Numbers: An Interview with Danielle Hayden

Introduction

Today’s post is a special one, especially if you’re a numbers nerd like me. We’re diving into a topic that’s crucial for every entrepreneur: money, budgeting, and financial strategy. I had an amazing chat with Danielle Hayden, a reformed corporate CFO who now helps female entrepreneurs understand their numbers. If you’ve ever felt overwhelmed by finances, this one’s for you. Let’s get right into it!

Danielle’s Background

Danielle Hayden, a former corporate CFO, is now the co-owner of Kickstart Accounting. With a mission to help female entrepreneurs understand their finances, Danielle has turned her passion for numbers into a thriving business. She brings a wealth of knowledge from her decade-long experience in corporate finance to her current role, where she helps business owners with bookkeeping, financial analysis, and education.

My Journey with Numbers

Before diving into our conversation, I shared a bit about my own background. Believe it or not, I used to work in accounting. I wasn’t particularly great at it, but it gave me an appreciation for the importance of understanding finances. Holding million-dollar checks as a 22-year-old was a surreal experience that underscored the significance of managing money well.

From Corporate to Entrepreneurial Finance

I was curious about Danielle’s transition from corporate accounting to helping entrepreneurs. She started her career as a hairdresser, where she quickly realized her love for the business side of things. This led her to pursue a degree in accounting and eventually become a corporate CFO. Her volunteer work with local entrepreneurs made her realize the gap in financial knowledge among small business owners, prompting her to start Kickstart Accounting.

Common Financial Struggles for Entrepreneurs

Danielle emphasized that many entrepreneurs, regardless of their background, struggle with finances. Whether it’s shame around money or a lack of understanding, these challenges can hinder business growth. She shared that even well-educated business owners can find it difficult to manage their finances because of the emotional connection they have to their business.

The Importance of a Financial System

One key piece of advice Danielle offered is to establish a solid financial system. This involves using accounting software like QuickBooks Online to keep track of expenses and revenue. Having an organized system allows you to make informed decisions about your business, such as when to invest in new tools or how to plan for future expenses.

Looking Back to Move Forward

Danielle shared a valuable strategy: looking back at your financial history to plan for the future. By analyzing your profit and loss statements from the past 24 months, you can identify trends and make more accurate forecasts. This helps you understand your revenue patterns and prepare for any upcoming expenses.

How Often Should You Check Your Numbers?

According to Danielle, the frequency of checking your numbers depends on your business. She recommends a weekly review for a detailed understanding of your financial status. This allows you to adjust your strategy and focus on revenue-generating activities if necessary. However, if weekly reviews seem daunting, monthly or quarterly reviews are also beneficial.

Advice for New Entrepreneurs

For those just starting out, Danielle advises separating your personal and business finances as soon as possible. This doesn’t have to be complicated—opening a separate checking account for your business transactions can make a huge difference. This separation helps you keep track of your expenses and makes tax time much easier.

Transitioning from Hobby to Business

If you’re transitioning from a hobby to a business, it’s crucial to start thinking of yourself as a business owner. This mindset shift can significantly impact your growth. Even if you haven’t formed an LLC yet, treating your podcast or online venture as a business can set you up for success.

Working with Kickstart Accounting

If you feel overwhelmed by your finances, consider reaching out to professionals like Danielle and her team at Kickstart Accounting. They offer a discovery call to learn more about your business and tailor their services to meet your needs. Their team handles bookkeeping, financial reporting, and provides you with a clear picture of your financial health.

Conclusion

My conversation with Danielle was incredibly enlightening. If you’re struggling with your finances, don’t hesitate to seek help. Having a clear understanding of your numbers can make all the difference in your business’s success. To connect with Danielle and learn more about Kickstart Accounting, visit KrystalProffitt.com/Episode270.

Remember, understanding your finances is a crucial part of being a successful entrepreneur. Keep it up—we all have to start somewhere.