If you have a business, please attention to these next few paragraphs. Following these guidelines will make one huge difference in your business: You can run your business or it can run you.
Those four words:
Measure Results, Change Activities
It really is that simple to have a business that works.
Measure Results: You need an accurate set of financial statements within 30 days of month end.
We also recommend that you have them prepared using a complete accrual method. You likely will file using cash basis for your tax return, but you still need the accrual basis so you can make good decisions. It’s all about the financial statement analysis.
That’s how you measure results.
You need to have a set of tools to use to assess what you see in the financial statements. I really recommend Keith Cunningham’s new book “The Ultimate Blueprint” for step-by-step guidelines on how to assess your financial statement.
Change Activities: Once you know what you financial statements say about your business, you need make decisions. What do you need to do more of? What do you need to do less of? Do you need more cash flow now or in the future? Do you need more income? What is the best way to do that, based on what you see with your financial statements?
Our affordable and easy bookkeeping service Cash Flow Accounting provides virtual bookkeeping so you can count on having accurate and timely financial statements you can use. Every one of our bookkeepers has a 4-year business degrees and experience in working with small business just like yours. You’ll be surprised at how affordable putting our team to work for you can be! Learn more at Cash Flow Accounting.
The difference between good and bad results can often be seen in the financial statements of companies.