Financial literacy classes are required in most high schools today, but this is often a high-level overview of financial concepts. While these classes are great for your personal finances, a deeper understanding of finance is needed when you go into business. Let’s talk about some tips to strengthen your business and how you can become financially savvy.  

When it comes to business, financially savvy people understand the impact their actions have on their business. From daily responsibilities to high-level decisions, everything impacts your bottom line. Knowing how decisions impact your business will help you make informed decisions as well. Looking into the factors that most impact your bottom dollar will ultimately help you see the big picture of your finances and beyond. 

Another tip to be financially savvy and help your business is to ensure you understand the numbers. Understanding the numbers such as return on investment, or your cash flow can help make your business more efficient. If you’re not sure where to start, seek out a professional to help you understand what the important numbers mean for you and your business.

Financially savvy people protect themselves from scams and fraud. Educating yourself on the current deceptive practices will be your first line of defense against a scam. Knowing what your day-to-day business finances look like will also help you to catch potential scams or fraud. With this knowledge, you will be able to spot a transaction that looks out of the ordinary or a payment made to a name you don’t recognize. Your business can also use fraud protection services such as Check Positive Pay or ACH Positive Pay to help identify fraudulent transactions.  

Finally, financially savvy people have a host of experts ready when they need support. Whether it’s your loan officer, an attorney, accountant or other professional, have these contacts ready in case a big financial decision comes on the horizon. If you don’t have a trusted loan officer in your corner, I’d love to talk with you and help you and your business. Being financially savvy will strengthen your business now and into the future. 

Brad Roling is the Columbia Market President for Mid America Bank. Brad has more than 10 years of banking experience that he uses to help businesses in and around Columbia thrive. When he is not helping your business with its financial needs, Brad is serving the community in a variety of capacities. He is proud to serve on the Ronald McDonald House Mid-Missouri Board of Directors as Treasurer, the Columbia Chamber Foundation Board, and Beta Theta Pi Advisory Board. Brad is a proud Mizzou grad and loves cheering on the Tigers!