Have you seen the advertisements for “debt consolidation”? You know the one, where the lady (man) has this “person” wearing a red tracksuit hanging off their back? As a business owner, your business could experience, this if you do not understand YOUR business’s Financial Statements (balance sheet and profit & loss report for starters).
What are financial statements, you say? The is where your bookkeeper comes to your rescue and data entries all monthly paperwork into a spreadsheet or accounting software package which in turn produces the balance sheet and profit & loss report. Now you have a choice…file it into a drawer or set aside time or challenge your bookkeeper to interpret the information. This could trigger questions such as – Why is the revenue lower than anticipated? Were all the invoices processed in a timely manner, if not, why not? You didn’t do any advertising in the month, but there is $1,000.00 showing up in the account, why?
The point here is that as a business owner you MUST know and understand your numbers. There may be money in your business bank account, but is it spoken for (accounts payable, loans payable). Or is there no money in the bank and your accounts receivable are sitting with outstanding invoices that are 60 days or older which are uncollected. Reviewing your financial statements give you a window to see how successful your business is. If your goal is to grow the company into a revenue-generating machine, then you need to know, understand and own your numbers.
Reviewing your financial statements give you a window to see how successful your business is. If your goal is to grow the company into a revenue-generating machine, then you need to know, understand and own your numbers.
You are a business owner with a great verbal story. You’ve got first-hand experience at how it got started, you know where it’s going, and who the key characters are in the plot. The business has now grown beyond your ability to wear and handle all hats (the owner, leader, janitor, bookkeeper and so on).
At Priority Business Solutions we get excited educating our customers on the health of their business. Reach out to us with your story and let us help you know YOUR numbers!