How To Manage Your Business Finances
Because many Owner Managers are the creators, inventors and entrepreneurs, finance is often left to the side and businesses in the SME arena are often run from a bank balance and a cheque book.
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The danger of running your business in this fashion is that the bank balance is a lagging indicator, and by the time it’s empty you end up with no cash to pay staff, suppliers, etc. and your business can come to a crashing halt.
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You need critical monthly financial information to run your business efficiently. It is essential because it can tell you if your sales are up or down, if you are consuming more or less to deliver your product, and if your customers are happy enough with your product to pay you on time.
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You only need the following reports:
Monthly Profit & Loss
Monthly (sometimes weekly) Debtors report
Monthly Creditors report
Monthly bank statement
Periodic Balance sheet
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Your book-keeping service or accountant should be able to provide you with most of these. But you need to understand that the above information is only accurate and valuable if you have all the data input correctly. These reports are like the life support equipment in an operating room, but in your case they keep your business alive.
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Frequent monitoring of this key information will help you identify departments of your business that are running well and departments that are not. To ignore these signs is bordering on reckless.
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So go ahead and Contact Fergus today about getting your business on track and getting the results for you, and your business. Contact Me Now or you can Telephone:
(Office) 01-901-1310
or email: info@thebusinesstroubleshooter.com
