April is Financial Literacy Month, a time dedicated to raising awareness about the importance of financial education and empowering individuals and business owners alike to take charge of their financial futures. For entrepreneurs, financial literacy is essential. Understanding the numbers behind your business can mean the difference between surviving and thriving.
To highlight this important topic, we invited Jaime Thompson, former Queen Anne’s County Economic Development Commission member and Founder of Nicholynn Advisors, to share her insights. With nearly two decades of experience helping entrepreneurs improve their financial operations, Jaime knows firsthand the challenges small business owners face and how the right resources can make all the difference.
In this article, Jaime outlines five of the most common financial pitfalls she sees among entrepreneurs, along with free tools and resources – including some available right here on Maryland’s Upper Shore – to help you avoid them and strengthen your business finances. Whether you’re just getting started or looking to grow, now is the perfect time to invest in your financial knowledge.
5 Common Financial Mistakes and How to Fix Them
- Mixing Personal and Business Finances
Many small business owners make the mistake of using a single bank account for both personal and business expenses. This not only makes bookkeeping a nightmare but also creates potential tax issues. It can be difficult to track which expenses are deductible and which are not, leading to inaccurate financial reporting and problems at tax time. Additionally, combining finances can complicate things if your business is ever audited.✅ Fix: Open a dedicated business bank account. The Small Business Administration (SBA) Guide on How to Open a Business Bank Account walks you through the process.
- Ignoring Cash Flow
Your business might be profitable on paper, but without enough cash to cover expenses, you’ll struggle to stay afloat. Many businesses fail not because they aren’t making money, but because they run out of cash to meet day-to-day obligations.✅ Fix: Use a free cash flow worksheet from SCORE to track incoming and outgoing funds. SCORE also offers free mentoring to help you improve financial planning. Locally, you can also reach out to Upper Shore Business Mentors, a regional team of SCORE-certified mentors available to support entrepreneurs in Queen Anne’s, Kent, and Talbot counties.
- Not Pricing for Profit
Many entrepreneurs undercharge for their services, not realizing they aren’t covering all their costs or generating enough profit to sustain their business. If you’re not factoring in overhead, taxes, or the value of your own time, you could be working hard without ever getting ahead.✅ Fix: The book Profit First by Mike Michalowicz provides a simple yet effective method for managing cash and ensuring profitability. Check your local library for a free copy, or attend a future workshop hosted by Queen Anne’s County Economic & Tourism Development where they regularly offer financial education as part of their Access to Capital Series.
- Avoiding Taxes Until the Last Minute
Waiting until tax season to review your finances can lead to missed deductions, penalties, and a surprise tax bill. Being reactive instead of proactive with taxes can hurt your bottom line and increase your stress.✅ Fix: Take advantage of the IRS Small Business Tax Workshop, a free online course that explains tax obligations, deductions, and record-keeping.
- Not Understanding Financial Reports
If you’re not reviewing your profit and loss statement, balance sheet, or cash flow statement, you’re running your business blindly. These reports provide a snapshot of your business’s financial health and help you make informed decisions about hiring, marketing, expansion, and more.✅ Fix: The Small Business Development Center – Eastern Shore Region offers free financial literacy workshops and QuickBooks training, both in-person and virtually. You can also access free tutorials on platforms like YouTube or work one-on-one with a Certified QuickBooks ProAdvisor like those at Nicholynn Advisors.
Local & Regional Support:
- Upper Shore Business Mentors (SCORE) – www.uppershorementors.org (local mentorship for entrepreneurs)
- SBDC Eastern Shore Region – https://www.marylandsbdc.org/locations/eastern-region (training, consulting, and access to capital support)
National Resources:
- Small Business Administration (SBA) – www.sba.gov (loans, grants, and financial guides)
- SCORE National – www.score.org (mentorship and templates)
Podcasts for Financial Literacy:
- The Mind Your Business Podcast (James Wedmore) – Explores the intersection of mindset and business strategy, including financial success habits
- Being Boss (Emily Thompson) – Offers practical advice for creative entrepreneurs, including financial planning and business budgeting
Must-Read Books for Entrepreneurs:
- Simple Numbers, Straight Talk, Big Profits! by Greg Crabtree
- Financial Intelligence for Entrepreneurs by Karen Berman
Financial literacy is an ongoing journey, but the right resources can make it much easier. By avoiding common pitfalls and taking advantage of free local and national tools, you can strengthen your business’s financial health and make more informed decisions.
Have questions? Reach out to your local SBDC advisor, SCORE mentor, or accountant for personalized guidance and don’t hesitate to connect with Queen Anne’s County Economic Development to learn more about upcoming workshops and programs designed to help your business thrive.
About the Author
Jaime Thompson is the Founder and Managing Partner of Nicholynn Advisors, an accounting and advisory firm that helps small business owners grow confident, profitable, and sustainable companies. With nearly 20 years of experience in accounting, bookkeeping, payroll, tax, and business consulting, Jaime specializes in supporting consultants, coaches, and service-based entrepreneurs.
Nicholynn Advisors is based in Queen Anne’s County and offers modern, personalized financial guidance for businesses, whether you need help organizing your books, navigating taxes, or planning for growth. To learn more or connect, visit www.nicholynn.com or follow along on Instagram @nicholynnadvisors.
Categories: Economic Development, Press Release