When owning a small business, you must know where every resource is going. It would help if you had a clearer picture of your small business. Whether it be money, time, or talents, to be successful, you must know the status of your business at all times. Too often, this leads to the feeling that you need to do and be everything in the company. This attitude or management style leads to sleepless nights, stress, poor health, and, eventually, a failed attempt to provide stability and security for your family.
In reality, the proper way to handle these challenges is to delegate responsibilities and have a few key indicators that you monitor. These key indicators will help you assess the state of your small business quickly and accurately at any given time. These factors will vary based on the type of business that you own, but there are some common things that you can focus on to provide yourself with a clearer picture of your small business.
To have a clearer picture of your small business, partner with an accounting firm that specializes in small businesses, and can provide a monthly financial statement.
You must be constantly aware of the financial state of your company. A monthly financial statement provides a clear picture of where your money is going. Your accountant should also be willing to sit down with you and explain exactly how to read a financial statement. At Accounting Complete, we provide all of our bookkeeping clients with monthly financial statements. One of our friendly Cloud Accounting Specialists is always available to provide details and clarification when needed. The result of our hard work is that you have the answers that you need at your fingertips without having to spend countless hours poring over receipts and check registers.
The Power of Reconciliation – knowing what I actually have in my account
Reconciliation is the process of comparing a monthly bank statement with your check register. It can be a daunting task to reconcile an account with so many transactions ranging from buying gas for a company vehicle to buying inventory needs.
One of the benefits of reconciliation is that you know exactly what you have in your account. Having a clear picture of your bank account can help you avoid bank fees from bounced checks and overdrafts. If you provide a subscription-based service (i.e., a landscaping company that collects a monthly fee), reconciliation can help you verify that your customers are making timely payments. In the case of automatic bank drafts, you can be sure their remittances are clearing as expected.
Most importantly, an adequately reconciled bank account will make you aware of any surprise bank fees or fraudulent transactions. Knowing about these items sooner than later will allow you to take active steps to remedy the situation. The real power of reconciliation is giving the business owner a clear picture of exactly where they stand each month.
At Accounting Complete, our Cloud Accounting Specialists take ownership of your books. They spend hours examining each transaction, and suspicious entries are flagged and discussed quickly.
Keep an open line of communication with your teams
Small business success depends on communication. To have a clearer picture of the health of your business, you must know the directions that your teams are going. It is also necessary to be able to give guidance effectively. Typically, conflicts arise because of a lack of understanding, and keeping open lines is a great way to avoid unnecessary strife. Tools such as Microsoft Teams or Slack are a great way to enhance inter-company communication.
Understand how to align your business
We all want to be winners! To have a winning business, you must have a financial plan that creates success. A significant part of winning in business is knowing your numbers, and this begins with accurate bookkeeping. All successful business people I know understand the critical numbers that drive their business. They know and understand what their labor rate should be, they track their gross profit margin, and they know that a healthy, sustainable business must make a profit. They know the winning formula that a Small Business Income Statement must reflect, and they use this knowledge for decision making and management of their business.
Get good advice
Having the right coach in football is extremely important! If you are from Alabama, well, you get it! Having the right coach in business is just as important. Your accountant is one of the most essential and trusted advisors you have. They understand how to read financial statements, know how to navigate taxes, and should be advising you on how to retire correctly and save for the future. They can help you spot those significant trends and work out a proper trajectory.
Let us help you get a clearer picture of your small business!
At Accounting Complete, we use our extensive knowledge and experience to help guide you through the shark-infested waters that is the small business market. Our highly trained group of Cloud Accounting Specialists will work diligently to ensure that your numbers are accurate and that we resolve any discrepancies quickly and completely. We are a full-service accounting firm, and our payroll department operates with the same laser-focused efficiency that made our bookkeeping department famous. Click here to schedule a free consultation where we can discuss how we can help you succeed by having a clearer picture of your small business!