Financial reports are not just taxes. Successful businesses review their financials weekly. We know that many business owners only look at their financials once a month. However, if a business sets up a budget to plan for their success, reviewing financials 15 days after a month closes means a company may continue to have losses month after month. Instead, reviewing financials on a weekly basis, so that costs are controlled during the course of the month and corrected as you go, will therefore result in your company being more successful at hitting your profit targets. One of our business advisors can explain in more detail how to set up your financials, budget and cash flows to ensure your success. “If a man has nothing to aim at, he will be unable to hit a target.” A financial system is the spine of any organization. Accurate and timely financials are essential for businesses to keep an eye on what is going on without working “in” their business. This allows an owner or executive team member to work “on” the business, providing the leadership to support its' successful growth. With accurate management financials, a company has the ability to cost its' products and services appropriately as well. It is imperative that a business know exactly where its' breakeven point is. If businesses price below breakeven, they lose money on each dollar of a sale. So that means the more you sell the more you will lose. In the course of business development, accurate job costing is essential as part of accountability to the purchasing system, operating systems and employee performance. Budgets are also essential for accountability. Some of the reasons for a good budget that is reviewed weekly are to ensure funding is adequate, purchases are kept in control, and shrinkage can be identified immediately, etc. Note the longer money remains in the bank the more it makes for a company.
Robert James, President
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