Below is a handy checklist to help you achieve Money Mastery. 

Use this checklist to strategize and enhance your comprehension of money and the financial well-being of your business.

Money Mastery – Base Level 

• Your bank reconciliations are complete and up-to-date 
• All your income, GST and taxes are filed, paid and current 
• All your bills are routinely paid on time 
• Payroll is automated, accurate and effortless 

• Your business is current with loan repayments and is in conformance with all loan agreements 
• Your accounting department is systemised 
• Financial statements including Cash Flow Budget and Balance Sheet are completed and reviewed monthly by the 5th to the 15th of each month 
• Each team member gets the relevant reports required and makes use of the information 
• Benchmark your budget annually to make sure it is delivering the outcomes you require 
• 12 monthly Cash Flow Budget is set and reviewed monthly 
• Systemise information gathering 
• Profit margins on each product or service category are known 
• You get paid first on a regular basis 
• You have read “Where has the Money Gone” 
• You have read “The Richest Man in Babylon” 
• You have read “CASHFLOW QUADRANT” 
• You have read “The Millionaire Mind” 

Money Mastery – Intermediate Level 

• The business owner gets paid what they are worth on the first day of every month 
• 10% of monthly turnover is held in a separate account for re-investment 
• 3 months’ cash flow is held in reserve in an insured bank account 
• Debt to debt-to-equity ratio is stable at a level that is consistent with owner’s risk profile 
• Return on capital employed is understood and targets are set 

• Return on equity is understood and targets set 

Money Mastery – Advanced Level 

• All financial ratio targets have been met and are reviewed quarterly 
• Your business is highly profitable and presents a great opportunity for an investor wanting to buy 
• You are pursuing sophisticated investing in business, property and shares 
• 10% of profit is donated to meaningful charities on a monthly basis 

Understanding your financials is a skill that anyone can learn. 

Have a great day, 

Andrew Roberts and the Farm Owners Academy Team 

P.S. Visit the Farm Owners Academy website.