Are you taking the monkey’s approach of hear no evil, see no evil or perhaps you are doing an ostrich, burying your head in the sand? Maybe you just relish ignorance being bliss!
Whichever approach you are taking, it won’t make the problems go away!
The biggest single reason businesses close their doors is Bad Financial Management! Don’t become a foolish statistic. What you don’t know, can and will hurt you, what you do know will liberated and strengthen your position.
So put on your big girl or boy pants and get out the paperwork
You’ll need your bank account statements, you need your weekly, monthly and annual bills, everything related to your overheads. You need your wage costs, yes yours too! If you aren’t paying yourself you just have a hobby. You will also need all of the bills related to producing your product or delivering you service and finally you will need your sales figures!
If you are on top of your game you can pull this information out of your accounting program, if you don’t have one and are using a spread sheet, shame, shame, shame!! Go and invest in your business and get yourself an accounting program that your accountant can work with.
Create a Budget
You can use a spreadsheet to create a budget, which is why you have just dived into your filing cabinet for all that paperwork, or you can download my free Simple Budget Planner here.
Once you know what your actual position is you can decide on your plan of attack. Are your overheads to high, prices too low or do you just need to sell more. Knowing where to focus your energy is so much more productive than living on a hope and a prayer.
What’s your favourite accounting software or have you switched to cloud accounting? Let me know in the Comments below or pop over to the Facebook page.