You probably did not start a business for the record-keeping or to push paper, right? In fact, you may be among the ranks of entrepreneurs who are content in knowing just two things: “How much money are you bringing in?” and “Are you making a profit?”
Knowing whether or not business generates sales is a start but managing does not end there. Equally important is knowing that the profit you see on paper does not always mean it makes it to the bank. The concept of managing finances is similar to raising a child. You create a solid foundation so that as it develops it becomes less dependent on you and can support its own growth.
So…What will help you to drive more revenue and build a business that you can expand? Good financial information. It starts with consistently tracking your money and having a way to turn the numbers into relevant information that you need. A client recently told me that she uses her financials each time she wants to start a new venture or expand on the one she has. She looks for insight on current sales and past performance to decide what offerings are doing well. It is empowering to know if your ideal customers are changing or if what you sell is behind the times. Financial reports reveal these trends to you so that you make the right moves and become more profitable.
There are many things to know as the chief steward of your company. It boils down to five things: money in, money out, cash flow, sales, and profit. If you are unsure of where to start, grab an instant download of the 10 Powerful Financial Questions to Ask When Reviewing Your Sales. No opt-in required :^)
Smile at your future!