Throughout this recent blog series we’ve been talking about identifying the accounting and finance problems in your business. Rest assured, once we’ve covered the problems we will uncover the possibilities for your business when you solve those problems. It’s far too important though, to not spend time focusing on the issues.
The first step to building a financially successful business is knowing your financial blind spots. These financial blind spots cause a lot of uncertainty as the leader of your business.
You started a small business out of a passion to serve your customers and fill a need in the marketplace.
Inside of growing your business you’re faced with being a “jack of all trades” and “master of none.” Marketing and sales, production and delivery, HR, legal, taxes. There are so many areas that require a certain level of expertise to keep your business growing.
You didn’t go into business to be a master of finances and accounting.
That’s probably why you’ve spent countless hours in uncertainty and numerous sleepless nights wondering if “the money” will work out as your business grows.
Knowing and understanding how to build the systems and processes to capture relevant actionable financial data is the only way to help your business thrive.
Beyond this, you’ll need to know how to format that data into meaningful financial reporting. And then how to read and understand those reports. AND THEN- how to turn that information into building a business that is financially more stable and healthy.
Depending on how fast your company is growing, there is also a need for expertise and analysis in many of the following areas
- Understanding and managing current short-term cash flow
- Gross profit margin improvement
- Managing overhead expenses
- Managing balance sheet health and liquidity
- Projecting and anticipating future cash flow needs
- Projecting and anticipating other future resource needs (like additional personnel), and how that will impact profitability and cash flow
Have you considered all the areas impacting your business financially?
How many financial blind spots do you have in your business? These financial blind spots cause a lot of uncertainty for business owners.
Our next blog will be the last in our series of understanding the problems of accounting and finance small business owners face.
As we uncover the possibilities of solving those problems and how to cover the gap in reaching higher ground for the healthy future for your business.