Many business owners hope their products or services will be used by many people. While it's important to focus on developing products that make customers happy, managing finances is also essential for a business to thrive. Various costs are involved, such as product development, labor costs, rent, utilities, and more. Additionally, taxes must be paid. These back-office expenses were never on my mind back when I was an employee.

 

Have you ever wondered how much the rent for your desk in the office might be? Every single thing, from a desk to a pencil, incurs expenses and must be paid by the company. However, the company doesn't start with money in hand. So while it's not exactly a chicken-and-egg situation, without money, a company cannot continue, and without a thriving business, money won't increase.

 

Therefore, to minimize expenses initially, a business owner might not hire employees and handle everything on their own. The concept of a minimum wage doesn't mean much to a business owner. No matter how many hours you work, if money isn't coming in, there won't be any salary. 

 

There's no room to voice a dislike for accounting or to avoid it. It's necessary to know how much your company currently has, what expenses are expected in the future, and the anticipated income. While focusing on sales and product development is important, the most crucial aspect is understanding your company's financial health. The only way to do that is through diligent accounting - just a gentle reminder to my fellow business owners.