By: Paulina Beck
Usually when you’re running a small business, or even a medium sized business, sometimes you end up wearing so many hats that certain things get neglected, including your finances. You’re being driven by other objectives and different priorities and things just fall through the cracks. But when those things get neglected, you’re given a unfriendly reminder on just how crucial they are to the foundation of your business.
Accounting doesn’t lie to you; it tells you the truth. It’ll tell you whether a product you’re selling or a service you’re providing is either profitable or not. Maybe you’re spending your time in the right place, or maybe it’s disguised as wasted time.
When accounting gets neglected, you have no way of knowing where you stand. Is your business healthy or taking a turn for the worst? Are you about to be blindsided by a cash flow issue next month? Are you meeting your sales target or falling short? All of that information lies in your financials and the reports derived from them.
Maybe you’re making money, paying your bills, paying your employees, and even paying yourself, but that doesn’t mean that you’re growing. It’s like going to therapy. Everything on the surface seems fine until you dive into the deep stuff, and you won’t know you have issues until you dive into your finances.
By really understanding what’s driving your business (i.e. sales, expenses negatively impacting your ROI, etc.) and breaking that down, you can determine your goals and actually take the right steps to achieving them.
So, get a little more personal with your business. Ask it some personal questions. When you feel more comfortable around your own business, it can only get better from there. And if you need someone to help get you there, let us know.