On a level of 1-10, how excited are you about Reports & Statements?
Do they bore you to tears?
If you are like me, you are always looking at how you can level up your business. Step it up a notch. So you can perhaps take a step back and take a look at what’s really going on. And how you can do that effectively?
Yes, you guessed it.
Paying attention to the Profit & Loss Statement (let’s call it P&L from now on) is SO important because it:
• gives you a clear picture of your company’s financial standing
• helps you to cut costs that are unnecessary
• shows areas where there is room for improvement
• shows how you could increase your revenue (money in the bank)
But did you know that it can also expose any gaps in your savings and expenses?! Essentially, you can fix the problem before disaster strikes.
And in this economy, this is crucial, right?
So let’s dig a little deeper.
If you keep your accounts up to date, you are armed with the most powerful weapon in your arsenal: concrete knowledge on HOW your business is doing when it comes to making money and spending it.
With this in mind, you are more able to make better financial decisions that will take your business to new heights.
If your numbers AREN'T flashing red then you will be able to invest money back into your business, and you won’t have to guess when it comes to making those all important decisions.
What went well? What didn't? What trends can you spot that influence your business?
By having the P&L to hand, you can keep a chronological record of how well your business has done over time. Ideal for seeing whether this can be repeated to help with future growth OR when it comes to investors or buyers if you are considering selling your business.
If you keep your accounts up to date, that feeds through to the profit & loss. Then you will readily have the information you need (or at least half of it!) at hand when it comes to sorting out your business taxes.
So save this post and keep in mind the three areas highlighted above, that will ensure you are not only saving money but making money.
Don’t know where to begin?
Book your power hour with us today! We're here to help.