Financial Post Magazine, Jenny Wagler
Entrepreneurs are self-starters. It’s a requirement for their jobs. But too many forget to take the initiative when it comes to organizing their personal finances. That can be a big mistake. “If business owners don’t look out for their financial future, no one else will,” says Cynthia Kett, a chartered accountant and certified financial planner with Stewart & Kett Financial Advisors in Toronto. Here, Kett offers five tips to help business owners get their personal financial houses in order.
> Watch your cash flow Unlike employees with regular salaries, business owners face greater uncertainty in knowing where their next paycheque is coming from. Plan your business and personal cash flow needs at least one year in advance to ensure that your revenue and financing sources are sufficient to meet your requirements. Better yet, do long-term projections to anticipate future cash flows and expenditures, especially for retirement.