The most successful business owners I have had the pleasure of working with over the last 35+ years knew their numbers. DO YOU! One sure way to increase your profits is by cleaning up your bookkeeping and spending 30 minutes a week reviewing the following critical areas:
- Your profit and loss statements.
- Sales reports by product and customer.
- Accounts receivable reports.
- Accounts payable.
- Cash on hand and in the bank.
With today’s easy-to-use accounting programs (such as QuickBooks) there really is no reason for any business owner not to have access to these reports.
You don’t have to become an accountant. But, hiring your accountant to cleanup your accounting, setup memorized reports in the above areas, and to teach you how to read them is one of the quickest ways to increase profits. This happens because you will spot trends early and react to them much faster than your competition.
Examples of this are:
- Noticing that one of your largest customers has cut their orders by 20% over the last couple of months. It would be smart to give them a call and see what is happening and how you can best meet their needs.
- Noticing that sales volume of one of your products has suddenly increased. What caused this increase? Is there an opportunity here that you can take advantage of?
- Noticing that a customer who always pays on time is falling behind. Time to give them a call. This is often the first sign of a customer service breakdown that you need to address in order to save the customer relation.
- Noticing that your office supplies have increased by 50% in the last month. Why?
These are just examples of how understanding and reviewing your books can help you increase your profits.
Thank you for your continued support and let's make this year our most profitable year ever!