The Best Bean Team

[hausdok]

By Ellen Rohr

The following story is true. The names have been changed to protect the innocent. If you think this story is about you...you are probably right.

The Martyr and The Intimidatorid="size4">

Leslie is the owner of a roofing company, a business she inherited from her father. Back in the day, her father managed a small crew and operated with handshake-contracts and stacks of cash. Now that her dad has retired, ambitious Leslie sees a different future. She wants to grow her company so that she can make a fortune…and provide career opportunities for her beloved team. And she wants to build on her (and her father’s) reputation for taking great care of her customers.

Leslie called me one day, after reading one of my articles. She described the vision she has for her company and her intent to build an empire. In response to my questions, she shared that…

• She knew how much she had in Accounts Receivables, but only saw financial statements once a year…at tax time.
• She didn’t understand how the financial statements related to what she did every day…sales, payroll, materials…so she pretty much ignored the reports anyway.
• She knew that she was in debt…but wasn’t sure how much. She just secured another line of credit to keep the cash flowing.

Sigh. I confronted Leslie about her lack of financial literacy. “It’s your company and your assets on the line. You need to KNOW. Tell me who is in charge of the accounting at your company.â€