Every business goes through changes. From a financial perspective, knowing when it is appropriate to make changes and learning how to manage those changes can be key to whether the business thrives. Organizing your business' finances is not just about bank deposits and checkbooks, it’s beyond just Profit and Loss reports.
If you are a solopreneur or small business owner, you wear many hats when it comes to your business. Being able to "take the temperature of your business" when you're wearing each hat helps you to make key decisions.
For example, when you're wearing your Marketing Hat you might ask, "Which one of my marketing efforts brings in the biggest bang for the buck? Which strategy is working and which one isn't?" Armed with the right financial report(s), you'll be able to answer these questions in a flash! You can then make decisions about whether to continue with a particular strategy, where it may need tweaking, or choose to do away with it completely.
While wearing your Sales Manager Hat, can you tell which product or service sells best during a particular season? How do you know when to risk raising prices and which product or service could withstand the increase?
Most small businesses set up their accounting software to track expenses and income from a tax perspective. Therefore, they can only get information from it that lets them see how much they make and spend. Setting it up to help analyze the business from various viewpoints enables you to make decisions that keep your business thriving and growing. It allows you to adapt to changing trends in your industry and keep your business successful!
Want some How-To's?
Consider a webinar or session: Beyond Profit & Loss