If you run an established business and still find yourself thinking, “I don’t actually know how much money I made last year,” you’re not behind, and you’re certainly not alone, no matter your stage of business.
In fact, this question tends to surface after a business reaches a certain level of growth.
At higher revenue levels, the issue usually isn’t understanding basic financial concepts. It’s that the business has become more complex – more transactions, more expenses, more people, more processes – and the financial systems that once worked no longer suffice.
What used to feel clear now feels… murky.
Why this happens as businesses scale
Most businesses in the $250K+ range didn’t get there accidentally. You likely understand revenue, expenses, margins, and cash flow at a conceptual level. But as volume increases, clarity doesn’t scale automatically.
Common friction points at this stage include:
- Owner compensation that evolved informally over time
- Financial reports that are accurate, but don’t clearly support pricing, hiring, or growth decisions
- One-off expenses, investments, or growth initiatives distorting the picture
- Books that are maintained, but not reviewed strategically and/or consistently
- Numbers that don’t feel trustworthy
The result isn’t ignorance. It’s lack of confidence in the data.
And without confidence, even strong businesses hesitate to make big decisions.
When knowing the basics isn’t enough
At earlier stages, it’s often sufficient to know whether money is coming in and bills are getting paid. At higher revenue levels, that’s no longer enough.
Established businesses need to answer more nuanced questions:
- Was last year profitable after accounting for owner pay and true operating costs?
- Did growth actually improve margins, or just increase workload?
- Is profitability sustainable, or was it driven by temporary factors?
- Can the business support additional hires, investments, or expansion?
These answers don’t come from surface-level numbers. They come from well-structured financial data and consistent review.
How to assess how much money you truly made last year
Rather than starting from scratch, focus on depth and accuracy.
- Review profitability and clarify owner compensation
If owner pay is inconsistent or unclear, profit becomes hard to interpret. Clarity here is essential at scale. - Look for patterns, not just totals
A full-year view is helpful, but trends matter more than end-of-year numbers. Consistency, volatility, and seasonality all tell a story. - Separate operational performance from one-time events
Large purchases, cleanup projects, or unusual revenue spikes can skew perception. Understanding what’s repeatable is key. - Evaluate whether your reports support decision-making
If your financials don’t help you confidently answer questions about pricing, hiring, or growth, the system may need refinement. - Notice where confidence breaks down
If you hesitate to rely on your numbers when making decisions, that hesitation is a signal worth paying attention to.
When it’s time to bring in support
For many established businesses, this stage marks a transition, not a failure.
The business has outgrown informal systems and needs a higher level of financial stewardship.
Working with a bookkeeper or accountant can help:
- Clean up and normalize financial data
- Ensure profitability is being measured accurately
- Translate reports into actionable insights
- Create systems that scale with the business
The goal isn’t just compliance or clean books. It’s confidence to make the decisions that matter the most for your business in the long run.
Final thought
Not knowing how much money you made last year doesn’t mean you lack financial understanding. It often means your business has reached a level where clarity requires stronger systems, deeper analysis, and consistent maintenance.
And addressing that now is what allows growth to continue, intentionally.