As small business owners, we all have big goals, dreams and visions for our companies or firms. We see big success and a long-lasting impact, yet are often so bogged down in running our businesses that this picturesque future seems fleeting.
Our environment not only takes a toll on us, but also causes us to lose a sense of the big picture: handling our business finances. Having a handle on your business’ finances doesn’t just allow you to stay in business; it unlocks the key information to more powerful solutions and long-term success.
At Sound Business Services, we study your data, take actionable steps, and provide you with real solutions to ignite business growth and reach your true potential. Here are three practical, yet powerful ways to get a better handle on your business finances, and, of course, SBS is here for you every step of the way!
- Make sure that all your customer invoices and vendor bills are entered into your accounting system on a regular basis. There is no better way to know the current state of your business than to know what your current receivables and payables are at any point in time. Items should be entered into QuickBooks as they are generated or received. There are some powerful apps to help with this. We would love to set up a time to discuss these with you, and discuss how we can use these to help automate your AR and AP processes.
- Bring your books up to date on a weekly basis. We have been programmed by bankers and accountants to do our bookkeeping on a monthly basis, but it’s hard to make current business decisions based on data from last month. Looking back is good for evaluating past performance, but provides little benefit in understanding your current cash position.By bringing your books up to date on a frequent basis, you can know what your true bank balance is if all outstanding deposits and checks are entered into your accounting system. You’ll also know your current credit card balances and month-to-date profitability. At SBS, we choose a day each week that works best for our clients to get their books up to date. This way, clients have a point in time each week where they can evaluate their finances. We even offer a service where we send our clients a cash position report via email so that they can have their key numbers in front of them on a regular basis.
- Create an annual budget. Many of us think of budgets as rigid and static, but they can also be very positive as practical tools to help us chart a plan for the future and track our actual performance against our goals.Budgets can be created fairly easily using historic data and tweaked to include your future goals. Then, on a weekly (see #2 above) or monthly basis, compare actual performance against your budget. Projections can be easily made from budgets, giving you another powerful tool as you strive to grow your business. The old saying, “If you aim for nothing, you’ll hit it every time,” is so true. Either create an annual budget yourself or we can help you do it.
SBS is Your Trusted Advisor
These three steps may seem overwhelming and time consuming, but don’t worry; we are here to help! Contact us today to get the ball rolling, or with any questions, and you’ll be on your way to getting a better handle on your business finances, improving cash flow and skyrocketing your future.