In my experience, nothing sheds more light on how you feel about and interact with money than owning a business. When you're an entrepreneur, your business reflects every financial habit and assumption you've ever had, and without the safety net of regular paychecks and employee benefits, It thrusts you into a world where financial responsibility falls directly on you. shoulder.
With so many jobs to juggle and multiple roles to take on at the same time, it's easy to neglect financial matters until more pressing needs arise, like filing taxes. But as award-winning accountant Rachel Harris knows, as she continues to campaign through her personal finance brand @accountant_she, ignoring your financial health can lead to a decline in both your mental health and business success. This can have a serious impact on your creativity and curiosity. That's what inspired her to start her own business in the first place.
“I've seen many successful business owners become completely crippled by financial insecurity,” Rachel comments. “Some bury their heads in the sand, some waste, and others freeze in fear. [That’s why] The transformational effects of financial well-being are very powerful. ”
As a young caregiver to her twin sister who grew up in a family with little money, Rachel knows firsthand how financial realities can shape you.
“I come from a loving family, but we're not blessed with money. I was a child on free school meals, dressed in charity shop clothes, and my mother took us for walks.'' [the supermarket] “I would go to the grocery store with a calculator in hand and figure out, down to the last penny, how much I could spend on food for the week,” she recalls. “Getting a financial education through training to be an accountant and working with business owners literally changed my life. It changed my perspective and changed my approach to almost everything.”
Rachel's path to becoming an accountant was certainly not conventional. Instead of attending university, she cared for her disabled sister, took up a business apprenticeship during the day, and studied for her Association of Accounting Technologists (AAT) qualification at night. . While completing her training at a top 75 accountancy firm in Oxford, she became increasingly disillusioned with the lack of support provided to clients and the overwhelming corporate culture that prioritized profits over people. I did.
Motivated by this frustration, she pursued an MBA and was finally able to start her own business, 'fortweetX', with her husband James in 2020. During this period of lockdown and working full-time, she also started an Instagram account @. accounts_she (a pun on Accountancy) creates entertaining and educational content about business finance and accounting. As of this writing, fortweetX has expanded from a one-person operation servicing her 50 clients to a team of 12 managing over 800 clients, and has opened her second office in the north of England. @accountant_she is now a British brand. As such, she reaches over 90,000 people across platforms. Rachel's message and her mission are clear and consistent, both in her business endeavors and in her role as an AAT board member and board member, aspiring accountant mentor and scholarship director. alone.
“I'm a disruptor in the accounting industry. I'm disrupting what it means to be an accountant, what it feels like to be an accountant, and growing my business to seven figures without losing myself. It’s destroying the concept of what you can’t do,” she explains.
Of course, to achieve this, practicing financial well-being is fundamental to Rachel's own business and personal life, and cultivating a mindset that reflects her goals has been paramount to her success to date. “Money is an amplification of who you are,” she agrees. “I'm a great person and do great work personally and professionally in the industry and for women in the world. Money gives me the opportunity to expand myself as a person.”
While this concept may seem appealing and obvious in theory, it can be overwhelming in practice. This is especially true if you're new to running your own business and need to get into the financial details. In fact, Simply Business' 2023 research reveals that 56% of UK small business owners have experienced a decline in their mental health in the past 12 months, and Tide's new UK Women Business Owners Index and 37% of respondents said they were struggling with poor mental health. Manage your cash flow.
Rachel agrees. “I specialize in addressing how people feel about their finances, and this seems to be the part that many other accountants miss.
“We all become self-employed to make money (in some way), but many of us don't work on tying our happiness and emotions to money. Financial health and mindset “Teaching sessions such as Full Forecasting allows me to give people clarity on big topics while reminding them that they come first,” she says. “This is holistic, person-centric finance delivered in a way that gives people confidence and ultimately grows their business.”
In Rachel's experience, the best way to build financial and emotional resilience is to repeat certain helpful tasks over and over again. “It's a muscle we need to use to build and maintain.”
Here are her top tips:
Start by defining your priorities
Incorporating simple yet effective exercises into your financial planning routine can do wonders. Rachel likes to use the Wheel of Life with her clients, a useful visual tool that allows her to check in on different areas of her life, including health, relationships, and work-life balance. By evaluating these aspects upfront, you can ensure that your financial strategy is aligned with your broader life goals. In this way, business planning not only pursues profits, but also contributes to overall happiness and fulfillment. Because, as Rachel says, “There's no point in planning a big business.” [strategy] If you're fundamentally burnt out or craving more time with your family, triple your income next year. Alternatively, you can target them to earn the same amount as last year, but with less income. ”
manage your time
Make your financial well-being a priority by setting aside some dedicated time. Spend at least 90 minutes on an initial financial in-depth review to ensure you have the opportunity to comprehensively assess your current situation. From there, schedule a 30-minute session each month to maintain and improve your financial routine. Consistency is key here and will ensure that you maintain your financial health.
Need to manage financial tasks weekly
Rachel says the best way to feel organized is to stay on top of your financials each week. First, regularly check your bank balance and connection to your accounting software so you can monitor your money coming in and going out. Next, make sure your bank account records match your accounting records so you can identify any discrepancies. She also suggests sending invoices immediately and entering expenses and invoices as they occur. If possible, use the cash flow forecasting tools available in the software to effectively predict and manage fluctuations in business income and, finally, upload copies of invoices and receipts as soon as possible after receiving them. and keep careful records.
Financial tasks to keep track of every month
Rachel advises setting aside time each month to handle important financial tasks that are essential to the success of your business. Start by making sure staff payroll records are kept up to date and payroll processing runs smoothly. Next, carefully analyze your annual and recurring sales, taking a deep dive into your income statement and ensuring you have funds for your taxes. Compare your profits and expenses to previous months and budget forecasts to get a clear picture of your financial trajectory. Remember to prioritize your own financial well-being by paying yourself well. In addition, we carry out a comprehensive review of the balance sheet, including the director's loan account and any outstanding tax payable to her HMRC. This helps businesses stay compliant, financially stable, and on the path to long-term success.
Bonus financial activities to increase your happiness
If you find it easier to manage your weekly and monthly financial tasks, Rachel can help you further improve your financial management practices with simple and effective tasks that increase efficiency and a positive mindset. We recommend that you do so. First, regularly review your expenses and direct debits to ensure they're aligned with your business goals and help you make smarter financial decisions. Track upcoming payments and renewals to avoid missing deadlines and seize opportunities to save money. By allocating a portion of your monthly income to your expected annual expenses, you can be proactive about saving and avoid financial stress during the busy season.
Finally, ensure your business runs smoothly by planning ahead for the replacement of critical assets. Incorporating these easy-to-do tasks into your financial routine will strengthen your financial foundation and set you up for steady growth.
“For me, financial well-being (just like our physical or mental well-being) is a state, not a destination,” Rachel concludes. “The state of being comfortable, confident, and satisfied with your financial situation. It doesn't mean you have millions in the bank or that you have a perfect money mindset, but it doesn't mean you have a perfect money mindset. will be improved. [money]”
Learn more about becoming a StriveX client or scheduling a one-on-one strategy call with Rachel. hereor you can also join her Financial Wellbeing Membership here.
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