Financial Literacy Isn’t Optional
Insights from the Athena Skill-Up Session
Hosted by Athena Advisory Collective & Becky Ezzell, Keep Smart Books
What Every Business Owner Needs to Know, According to Becky Ezzell
When it comes to business finances, too many entrepreneurs treat it like cleaning out the fridge. Something they know they should do but avoid for as long as possible. That was one of the standout metaphors Becky Ezzell used in her financial literacy workshop for our community of business owners, and it landed.
Becky, founder of Keep Smart Books and Keep Smart Books Academy, didn’t sugarcoat things. Most of us start a business to do what we love, not to obsess over balance sheets. But the truth is simple. If you don’t understand your numbers, you can’t make good decisions, grow with confidence, or plan for a future exit. Financial literacy is not optional. It is foundational.
The Problem Isn’t That You’re Bad With Numbers. It’s That No One Ever Taught You.
Becky started with a few sobering stats.
Only 33 percent of women globally understand basic financial concepts.
Around 39 percent of women business owners say they have a poor understanding of business finance.
And even when women feel somewhat confident, 84 percent still report feeling overwhelmed by financial decision-making.
The message was clear. This isn’t about intelligence. It’s about exposure. Most people were never taught how to read a profit and loss statement, interpret a balance sheet, or manage cash flow. And that leads to hesitation, underpricing, tax issues, and missed growth opportunities.
Balance Sheet First. P&L Second. Always.
One of Becky’s core principles is this. Your profit and loss statement is only as good as your balance sheet. Many business owners love the P&L because it shows income and expenses. But if your balance sheet is off, your P&L becomes meaningless.
The balance sheet is the truth-teller. It shows what you own, what you owe, and what’s left over. It also reveals patterns that can’t be seen in a single month’s financials. Becky emphasized that when people say, “I made eighty seven thousand dollars last year, but I only have ten thousand in the bank,” the answer is always on the balance sheet. Debt payments, inventory purchases, draws, and taxes. All of that lives there.
She encouraged every attendee to sit down with their bookkeeper and go line-by-line through the balance sheet. Can each number be verified by a statement or source? If not, something is off.
Avoid the Most Common Mistakes
Here are some of the most common traps Becky helped us unpack.
Commingling funds
Never use your business debit card like it’s your personal account. It creates bookkeeping chaos and could cost you deductions.
Neglecting financial reviews
Even if you hire a bookkeeper, you are still responsible for knowing what is going on with your money.
Misunderstanding cash flow
Net income is not the same as available cash. You need to know what came in, what went out, and what stayed in your account.
Treating payroll casually
Before you hire, understand the fully loaded cost of that employee, including benefits, training, taxes, and more.
S-Corps, Draws, and Owner Salary: What You Should Know
If you are taxed as an S-Corp, the IRS expects you to take a reasonable wage. Becky recommends asking yourself, “What would it cost to replace me in this role?” That number is a good starting point.
She also recommends a fifty-fifty balance. If you take seventy five thousand as a salary, you can take up to seventy five thousand in draws. Too much draw and not enough payroll can raise red flags. Worse, it can mess with your equity and create tax issues later.
Becky also explained how equity works and when draws become a problem. If your equity becomes negative because you’ve taken too much out, it affects your taxes and your financial credibility. If you are not sure, have your advisor review your equity position with you.
Behavioral Cash Flow: Profit First With Strategy
Profit First is a well-known method, but Becky made it clear that it needs to be used wisely. It is not just about envelopes and percentages. Without understanding your financials, it won’t work the way it should.
Becky uses it as a behavioral tool. She recommends setting aside money for profit, taxes, operating costs, and emergencies. That way, your business runs with intention, not reaction.
She stressed the importance of building three to six months of reserves. If the past few years taught us anything, it is this. You need a cushion to survive the unexpected.
Dashboards, KPIs, and Making Data Useful
Once your foundation is in place, Becky recommends setting up simple dashboards and KPIs. What gets measured gets managed.
You can track:
Monthly revenue
Payroll as a percent of income
Cash reserves
Client or patient volume
Marketing performance
This data helps you make better decisions. It also helps you see when something is slipping before it becomes a crisis.
Becky’s Trusted Resources
Books
Tools
A trusted bookkeeper who understands the big picture
A tax advisor who asks good questions and explains the why
A monthly review rhythm that builds your confidence over time
Last Thoughts
You do not need to be a finance expert to lead a successful business. But you do need to understand your numbers. Financial literacy gives you power. It helps you make better decisions, keep more of what you earn, and grow with clarity.
Becky’s session was more than just educational. It was empowering. She reminded all of us that we are capable of learning this. It’s not about perfection. It’s about awareness, habit, and confidence.
If you want to grow a stronger business, this is where you start.
