The Business of Confidence: Why Women Need a Seat at the Financial Table
Over the past two decades as an accountant and business consultant, I've worked with many small business owners. A pattern has consistently emerged, especially with the husband and wife teams I’ve served: The businesses are often fueled by the wife's expertise—from running childcare centers and thriving e-commerce health-food catering businesses to multi-unit franchises—yet when it comes to the books, the husband is almost always my primary point of contact.
This wasn’t because the men were necessarily more financially savvy. In fact, they were often paying me to provide the knowledge they lacked. The reason was much simpler, though perhaps more complex: in every instance, the women had no interest in "talking shop" when it came to the high-level financial health of the business. They were in charge of the day-to-day spending decisions, but the strategic financial management was a role they readily delegated, either to their husbands or to me.
I can already hear the pushback, particularly from my Black women readers. "But we manage the household finances!" And you're absolutely right. I’ve seen it firsthand in my social circles; Black women are often the savvy, no-nonsense managers of the family budget. They make sure the bills are paid, the children's needs are met, and the household runs smoothly. But there is a distinct and crucial difference between managing the money coming in and out of a family and steering the financial health of a business. One is about survival and stability; the other is about strategic growth and building wealth.
In my experience, women generally find business finances to be intimidating. Even my female-only clients tend to assign me an "overseer" role rather than partnering with and learning from me. The men, on the other hand, embrace the challenge. They ask questions, study up, and even challenge my knowledge. They find power in their role as the money manager, often speaking with a degree of certainty that's not always supported by their level of understanding. This is a classic case of confidence triumphing over aptitude—a willingness to take on the role despite not having all the answers.
Why is this? Why do so many women, who are the lifeblood of their businesses, shy away from the financial side of things? While the reasons are certainly varied and personal, I believe it has everything to do with social conditioning in a patriarchal society. We've been taught to see finances as a man's domain—a complex, intimidating world to be managed by others. We see it reflected in media, in family dynamics, and in our own subconscious beliefs. And this mindset is limiting. It’s an invisible barrier that prevents women from fully stepping into their power as business owners.
The data supports this need for greater financial engagement, especially for Black women. Black women are leaving the traditional workforce and entering entrepreneurship at higher rates than any other group. For instance, a recent study by Guidant Financial showed that Black women were starting businesses at the fastest rate of any demographic. But as we step out on our own, we also face unique challenges and economic hurdles. Black women-owned businesses, while growing rapidly, still lag significantly in revenue compared to those owned by other groups. To truly thrive and close that gap, we need to harness every advantage we can. And a deep understanding of our own business's finances is one of the most powerful tools in our arsenal.
This is my "why." I've made it my mission to help women break free from this limiting mindset. My goal is to encourage you to take full control of the financial health of your businesses, not just because it’s smart, but because it’s your right. If you're part of a team, I want you to embrace an active role in assessing and managing your finances. You shouldn't just be making the spending decisions—you should be charting the entire financial course. It's time to stop delegating your power away and start owning your numbers, because when you own your finances, you truly own your business.
Tips for Leaning into Your Business Finances
Taking control of your business's financial health can seem daunting, but it doesn't have to be. Start with the Basics. You don’t need to become a certified public accountant to be adept at managing your business finances. And you don't need to acquire these skills overnight.
Here are are FIVE (5) actionable tips to help you get started:
- Understand your key financial statements: the Profit & Loss (P&L) and the Balance Sheet. Think of these documents as the vital signs of your business. The P&L tells you if you're profitable, and the Balance Sheet gives you a snapshot of your company’s financial health at a specific moment in time. Get to know them like the back of your hand.
- Schedule a "Money Date": Set aside dedicated time each week or month to review your financials. Treat it like an important business meeting with yourself or your partner. Use this time to look at your revenue, expenses, and cash flow. Compare this month’s numbers to last month’s and identify any trends or red flags. This regular practice will build your confidence and make the numbers feel less intimidating.
- Ask Questions, Even the "Dumb" Ones: Don't be afraid to ask your accountant, bookkeeper, or financial advisor to explain things in a way you can understand. Remember, you're paying for their expertise, and they should be your partner in this process. A good professional will be happy to teach you because your engagement shows you care about the business's success. Asking questions is a sign of ownership, not weakness.
- Embrace Business Financial Literacy: There are countless free resources available, from online courses and webinars to blog posts and podcasts. Dedicate time to learning about topics like pricing strategy, cash flow management, and profit margins. Understanding your break-even point—the amount of revenue you need to cover all your costs—is one of the most powerful insights you can gain. Knowledge is power, especially when it comes to your money.
- Focus on Profitability, Not Just Revenue: High revenue is great, but profit is what keeps your business alive. As the saying goes, "Revenue is vanity, profit is sanity." Shift your mindset from just making sales to ensuring that every single sale is profitable. Understand your costs and find ways to optimize your spending without sacrificing quality. This is the key to building a sustainable and resilient business.
By taking these small, consistent steps, you can start to demystify your finances and build the confidence needed to take a powerful, active role in the financial success of your business. When you understand your numbers, you can make smarter decisions and build the kind of legacy you deserve.
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