You’ve got the drive. You have the motivation. You will do anything to succeed. No task ever stands in your way, but perhaps it should. The very talents that allow you to be a business owner mean there are tasks for which you are simply not a good fit. By doing them anyway, you hurt your business.
Nature tells us spring is a great time for renewal. A natural time to look inward and check in to make sure you are indeed living your life and running your business in alignment with your talents.
To help with your internal spring renewal, here are six financial tasks to reassess.
- Budgeting. If you are really doing a good job of budgeting, you are using a budget as your annual financial plan. The senior managers in your business should develop and commit to your budget. These are the people who will make or not make your budget happen. Engage them, challenge them, and make your budget a living document for your entire team to fulfill.
- Forecasting. Every business needs an active forecasting system that looks forward the next 90 days to 6 months. Forecasting lets you course correct early and often. Your sales team should be forecasting sales, and your operations team forecasting expenses.
- Writing checks, paying bills and sending invoices. You are way too valuable to your business to spend your attention on day-to-day bookkeeping. More importantly, detail probably isn’t in your DNA if you are en entrepreneur. If you are meddling in your accounting, likely you are making more work for someone else. Do you need checks and balances in your accounting system? You bet. Do you need to be the one making that happen? No way.
- Stepping over dollars, looking for pennies. Manage your costs by reviewing your budget. Set thresholds of variance you want answers to. Avoid the rabbit holes of analyzing minimal variances. For example, if your budget is 10% of revenue for marketing, focus on 2 things. One, are you getting the results you want from your marketing? Two, are you within 10%?
- Setting up your chart of accounts. A good chart is a gold mine of information. A bad one, gives you nothing. Let the professionals build your chart of accounts.
- Ignoring your balance sheet. Few business owners understand or give enough respect for the wealth of information on their balance sheet. Own up and tell someone you need to be educated on why your balance sheet is important and how to use it.
If you want to put your mind at ease, rather than doing work that you aren’t a fit for, assess your financial systems strengths and weaknesses using our Financial Factors Scorecard™. Follow the instructions to get clear, concise, accountable goals for improvement.
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