By Sue Thompson, Founder of Abundant Skies Tax & Accounting
You’re busy. Customers are paying. But when it’s time to pay yourself, you’re still wondering what you can afford to take.
It’s a question I hear often: How can a business be making money while the owner still feels broke?
Usually, we need to look beyond how much is coming in and get clear on where it’s going, when it’s going out, and what you need that money to do. A full schedule and steady sales don’t tell you everything about the financial health of your business.
From our first episode of Business in Abundance
Nick and I talked about this in the first episode of our new podcast, Business in Abundance. We’re having honest conversations about the numbers and decisions behind running a business, including the questions owners don’t always know how to ask.
For our first conversation, we started with this one: Why does cash still feel tight when business is good? Here are some of the things we talked through.
Why doesn’t more revenue always mean more breathing room?
When you first start a business, bringing in revenue takes most of your attention. You need customers, work, and enough money to keep the lights on.
As the business develops, you need a clearer picture of what happens after a sale.
Revenue is what the business earns from its work. Profit is what remains after expenses. Cash flow is the actual money moving in and out of the business, including when you receive it and when you pay it out.
Think about a contractor who has plenty of work booked but needs to pay for materials before the customer’s final payment arrives. The job may be profitable, but the timing can still put pressure on the bank account.
Or consider an owner who keeps reinvesting in equipment, software, and help. Those decisions may support growth, but they also affect what’s available to take home.
Before you decide that you simply need more sales, look at what your current sales need to cover.
What my own business taught me in 2008
Going into 2008, I had built a business with about seven employees. Many of my clients were startups, which I loved working with. When the market changed, I found myself helping some of those owners close their doors.
My own company eventually shrank to a quarter of its size.
I had to let employees go. That was deeply emotional, and I waited too long because I was making decisions from those emotions instead of responding to the numbers.
Eventually, it was just me.
That experience changed how I think about preparing for the future. I started asking why some businesses had been better positioned to get through the downturn and what I could do differently.
One lesson was to build reserves. You don’t have to build them all at once, but you do have to start setting money aside. Those reserves give you more time to make decisions when business slows down.
Another was to strengthen your bread-and-butter business before stretching into the next opportunity. Understand what reliably keeps the lights on and how dependent you are on any one customer or type of work.
I wanted to serve everyone when I was starting out. Learning where to focus, and when to say no, was part of rebuilding.
What should you look at besides your bank balance?
Your bank balance shows you what’s there at that moment. It doesn’t explain every commitment attached to that money.
There may be a payment that hasn’t cleared, an upcoming bill, or money you need to keep available for taxes. We can spend the same money several times in our heads, but we can’t do that at the bank.
That’s why I encourage owners to stay connected to their accounting throughout the year.
Your profit and loss statement helps you understand revenue and expenses over a period. Your balance sheet shows what the business owns and owes at a point in time. Looking ahead at expected payments coming in and bills going out helps you prepare for the weeks ahead.
If you’re only using your accounting to file taxes, there’s a lot of useful information you’re missing.
Even if someone else keeps your books, you still need to understand what those numbers mean. They help you answer the questions I come back to with clients: What’s working? What isn’t? What are we going to do next?
Start with a weekly money date
My money date is on Friday mornings.
It’s a regular appointment to look at what’s happening in my business. Having that routine makes it easier to notice changes and address questions before they build up.
If looking at your numbers feels overwhelming, start with 15 minutes this week:
- Review your regular commitments. What needs to be paid to keep the business operating?
- Look at spending you can adjust. Are you still using the tools and services you’re paying for?
- Check what’s coming next. What payments are you expecting, and what bills are approaching?
- Choose one thing to follow up on. What needs a closer look or a conversation with your accountant?
When you’re considering a purchase or a new hire, ask what you expect that investment to do for you. Then come back and check whether it’s doing that job.
Sometimes the answer is more revenue. Sometimes it’s time saved or work you can take off your plate. Be clear about the result you’re looking for.
A software subscription is a simple example. You sign up because you think it will help, stop using it after a few months, and keep paying the bill. A money date gives you a chance to catch that.
Try looking at your numbers with “Isn’t that interesting?” instead of beating yourself up over a decision you’ve already made. You need to see what’s happening so you can decide what to do about it.
What do you want your business to support?
Two people can run similar businesses and want very different lives.
One may want to grow a team and eventually sell the company. Another may want a dependable income and more time with their children.
Those goals call for different decisions.
If your goal is to spend summers with your family, doubling revenue while filling every available hour with work may take you further from what you wanted.
This is why I ask business owners, “For the sake of what are we doing all this?”
Do you want employees? Do you want to grow the company? Do you want the business to provide income you can invest elsewhere? What do you want an ordinary week to look like?
There isn’t one right answer. But your answer matters when we’re deciding how to manage the money.
Work through these questions with me at the CFO Players Club Retreat
Sometimes you need time away from the day-to-day work to think about these questions. That’s why I created the CFO Players Club Retreat.
We’ll meet October 8–10, 2026, in Montana’s Flathead Valley, with a group limited to 15 business owners.
Over three days, we’ll look at how you manage money, what you want from your business, and what needs to change to get there. Bring the questions you’ve been putting off and the decisions you’d like help thinking through.
You’ll also spend time with other owners who are figuring out many of the same things you are. Nick attended last year, and one of the things he mentioned in our conversation was how much he appreciated being around people who understood his experience as a business owner.
If the business is paying the bills, but you’re wondering what comes next, this may be a good time to join us.
The investment is $3,600 for one attendee or $5,500 for two people attending together. That covers all three days of programming and direct work with me in a small group. Installment options are available, with the balance due before the retreat. Travel, transportation, and lodging are not included.
Learn more and apply for the CFO Players Club Retreat. Applying doesn’t commit you to attend. We’ll have a conversation first to answer your questions and see whether it’s a good fit.
In Abundance,
Sue