As part of the celebration of Women's Month in South Africa in August, the focus is placed on the often underestimated aspect of women's empowerment—the development of financial skills. The author notes that understanding financial language can transform both businesses and communities.
Through her career as a chartered accountant (CA), working both locally and internationally in New York and Sydney, the author is convinced of the importance of financial independence for women and its ability to allow them to live by their own rules.
Empowering Female Entrepreneurs
South Africa is a leader in Africa in supporting female entrepreneurship. Despite persistent gender inequality, women in South Africa are achieving success in the business world. The country ranks second in Africa for the percentage of businesses owned by women and the official support available to them. Nevertheless, the unemployment rate among women in the country is 35.5%, compared to 32.6% for men, indicating the need for further progress.
The author believes that financial literacy can help unlock potential. Financial literacy involves knowing the principles of handling money: how it is earned, managed, invested, and saved. It also means knowing how to use financial tools and resources to make informed decisions and achieve financial goals. Understanding the basic principle of cost-to-income ratio is critically important regardless of profession—whether you are a doctor, hairdresser, or software developer. Knowing the financial status of a business helps manage cash flow, which is often the cause of a business failure.
When women have financial literacy, they are better able to start their own businesses, make sound investment decisions, and contribute to the economic growth of their communities. They are better prepared to overcome financial crises, advocate for fair wages, and plan for a secure retirement.
Developing Financial Skills to Unlock Growth Opportunities
In her role as co-founder and director of Finance Studio, she enjoys observing the drive for growth among small business clients. One early client solved the problem of not being able to obtain bank financing by selling a 24-month mobile contract for 20,000 South African Rand and using these funds to launch their venture. The author called this a brilliant solution and expressed love for the resilience of South Africans. By watching clients grow and create jobs, the author feels she has made a positive impact on the future of South Africa. She is also proud of her own growth and the team of talented young accountants and CAs.
Leveraging Support to Develop Financial Skills
As a firm co-founder, the company has always strived to provide exceptional service to clients. Financial expertise has helped the firm develop sustainably without sacrificing quality of work. The company intends to help its clients develop their own financial competencies. The author believes that financial literacy is necessary for all business owners, and they recommend using online tools such as Xero to analyze the company's financial position. Without knowing their financial figures, it is impossible to make decisions that will help the business succeed.
Working with an accountant and using intuitive tools for bookkeeping frees up busy entrepreneurs, allowing them to dedicate time to what they enjoy. In honor of Women's Month, it is necessary to ensure the financial empowerment of women and advocate for financial literacy. Whether you are an experienced business owner, a budding entrepreneur, or a woman just starting her financial journey, remember the power of knowing your numbers. You must acquire financial skills, utilize digital tools, and take control of your financial future.
