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.

  1. 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.
  2. 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.
  3. 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.
  4. 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%?
  5. 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.
  6. 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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