As we wrap up summer and send the kids back to school we want to make sure you are completing your business homework as well!
As a business owner, you should be reviewing your financials on a monthly basis.
Every month make sure you are:
- Processing all your transactions in your accounting software
- Reconciling your accounts
- Run your financial reports
- Most importantly review and analyze your reports.
As you look through your own statement this month take some time to look at your numbers. Does anything look or feel off? If something doesn’t seem right trust your gut and look into it and figure out why the balance seems odd to you.
What corrections or necessary adjustments do you need to make?
We are always preaching that our finances are trying to tell us a story and it’s your job as the business owner to listen to the story so you can learn from it. What corrections or necessary adjustments do you need to make to hit your goals?
This month we challenge you to look at your revenue, every business owner’s favorite part of the financial statement.
- What trends do you see? Do you have a seasonality in your business that you should be preparing for? (For example: Christmas rush or winter decline)
- Is there a client that is responsible for the majority of your revenue? Best practices do not have any one customer make up more than 25% of your total revenue.
- Perhaps it’s a particular product or services your business provides? Do you have a new product line that is growing faster than the others? Basically, where is your business making the most money? Don’t forget to include your cost of goods sold when performing this analysis.
If you would like more information on getting your financial statements completed for you every month and getting accounting off your to-do list be sure to schedule a discovery call!