Am I Making Any Money?
This is a frequent question we hear from small business owners. They think everything is ok and their financial reports say they have money, but they don't see it in the bank. Or they have the alternative problem - there’s money in the bank, so they spend it, not knowing the full extent of their financials at this time.
Business accounting can get confusing if you don't have a good guide to help you navigate the rough waters.
Fortunately, there are some key indicators that we can look at to see if you’re really making money.
Review your cash on hand via your current bank balance.
Review a Profit & Loss report on a CASH basis (not accrual) to see your current flow of cash.
Check the balance sheet for how much money was taken out as distributions or draws.
Understand how much you actually owe by reviewing your credit card balances.
These are valuable areas to maintain a pulse on in your business at all times, but how do you use them to make financial decisions for your company? This is where I like to step in. Navigating these numbers is how I help you plan for true profitability.
Want to know more? Schedule a call with me and let me show you some ideas.
With my team at Pivot Business Group we can help your company make fundamental, profitable changes to the way it manages and uses your financial numbers.
We have a number of packages available to help.