Have you found a favorite exercise or diet regimen that produces great results for your personal fitness? How much time do you invest in maintaining that regimen, hitting the gym and preparing food? Wouldn’t it be great if you could just do that work out once a month and get outstanding results? Wouldn’t you love for the things that require maintenance in your life to come a little easier?
How about the health of your business? Do you have a regimen in place that produces top health for something as crucial as your business? Preparing monthly financial statements IS part of that regimen! Think of financial statements for your business as the most effective workout routine that will bring the results you desire.
Results begin with knowing where you currently stand and where you desire to finish, and then making a plan. How can you know the health of your business without the necessary information you get from your financial statements? How can you reach your ideal weight (goals) without the knowledge to get there?
Knowing the financial condition of your business is actually quite easy. The process begins with having financial statements prepared once a month so you can see the progress of your business. With the information recorded in these accounting records, you can make better business decisions to strategize towards greater health. These documents are the monthly weigh-in that can meaningfully inform your next choices according to what has worked in the past and what you might change.
The following questions can be all answered through the information found in financial statements:
- Do I have enough cash to pay amounts due to my vendors?
- How much money is due from my customers?
- Which of my products or services are profitable? Which are losing money?
- Which of my expenses are too high?
- Are bank loans helping to increase my sales?
- Is inventory being sold frequently enough?
The best health regimens always comes by making the best choices and maintaining habits that will sustain those choices. The monthly practice of preparing financial statements and acting upon the information found within will affect the health of your business, just as diet and exercise positively effects the body. Once it becomes habit, it is easy to maintain and apply.
If you would like assistance with preparing the monthly financial statements of your business, as well as any tax planning throughout the year, which can save you cash to reinvest into your business, please don’t hesitate to give us a call. You may reach us at (770) 428-6229.