April is Financial Literacy Month, and the Indiana CPA Society is encouraging small business owners to familiarize themselves with important information. 

Courtney Kincaid, the President and CEO of the Indiana CPA Society, says her organization is committed to educating small business owners and entrepreneurs about financial literacy. She says the first step is understanding your business and its operation. However, since not all small business owners speak the “language of business,” many terms can get lost in translation. 

Kincaid says it is important to understand the difference between a balance sheet and an income statement. Knowing your assets vs. your revenue can be crucial to helping your business succeed. “If you’re running a business, you need to be financially literate,” Kincaid says.  

In addition, Kincaid says one of the most important things to understand is your credit rating and how it can be impacted. A healthy credit rating is critical to obtaining loans and new funding for your small business. 

Kindcais says you should turn to a CPA for help and guidance when in doubt. She encourages small business owners to interview several CPAs until they find the right fit for their needs. Kincaid says your CPA can act as your financial translator regarding understanding your debt ratio. “CPAs speak the language of business.”