A 2018 survey conducted by Shopkeep found that “Profitability is the most significant challenge for small business owners”. This finding reiterates that there is “no substitute for cash flow management”. Here is a link to the full article and the findings:
What is so important about this finding? If you don’t know where your money is coming from and where your money is going, that significantly affects your chances of growing and maintaining a profitable business!
Think about it….you may look at your bank balance and think you’re doing okay. But you may have forgotten you have an upcoming bill to pay for inventory, or you have a handful of outstanding checks about to get cashed, these and many other items get lost in the shuffle and you don’t have the “big picture” of your business.
This problem has an easy fix! Get your bookkeeping under control. Setting up your books in an accounting software is a basic necessity. Then have all your transactions and accounts entered and reconciled each month. Then determine the reports you need that will translate your transactions into usable information.
I can work with you to help you organize your finances and produce accurate reports to serve you best. Just because maintaining profitability is a concern for most business…it doesn’t have to be for yours!
Jordan Ilderton, CPA