Create Your Financial Plan
This week on Tuesday Tips we will continue to talk about how we are preparing for year end and setting your business up for success in 2018.
As a business owner,, you should be having a CFO day each week. If you were doing that, you should be looking at your business financials. You should know:
- How much money you received this week?
- How much do you expect to receive next week?
- How much were the expenses for this week?
- How much is the projected expenses for next week?
If you are doing your own bookkeeping (which is ok in the beginning of your business), you should be keeping up with your transactions weekly. If you are a more mature business, you should using your bookkeeping time to focus on creating strategy for your business or actually generating new sales.
Either way, you should be having a CFO day because you are boss.
As we are approaching the end of the year, all of your bookkeeping tasks should be completed to date. Now that you have your financial activity for at least the last 10 months, now you can start to create a strategy for 2018.
The first report you should run is the Profit & Loss statement. You should run several reports. If you are not using an accounting software, you should invest in one asap. We can help you with that.
- YTD Profit & Loss statement summary
- YTD Profit & Loss statement as a percentage of sales
- YTD Profit & Loss statement compared to last year
Once you have analyzed these reports, you can begin formulating a plan for 2018.
- You should be deciding which service/product lines you will continue in 2018.
- You should also decide if a price increase is necessary for your service/products.
- You should also do an audit of your expenses.
- Determine which expenses you are not utilizing and cut those expenses.
If you would like to finish 2017 strong and start 2018 with a plan in place, schedule your appointment today.