Leveraging Financial Reports for Business Success

Greetings, LinkedIn community!

Today, we delved into a vital aspect of business management: understanding and utilizing financial reports. If you have QuickBooks and you're outsourcing your bookkeeping, congratulations, give yourself a pat on the back because you're ahead of the curve. Now, let's talk about the reports your bookkeeper sends you. First off, are you receiving monthly reports? And if so, what kind?

Monthly Profit and Loss Statements:

Monthly reports offer insights into your business's performance on a month-to-month basis. Analyzing them allows you to identify patterns, pinpoint peak seasons, and make informed decisions. For example, if you notice a revenue spike in July, you can backtrack to understand the contributing factors in preceding months. Moreover, strategic timing for price adjustments can be gleaned from these reports.

Yearly Profit and Loss Statements:

Yearly reports provide a holistic view of your business's financial trajectory. It's a moment to reflect on your journey and celebrate achievements. Seeing growth year after year offers motivation and valuable insights into the effectiveness of your strategies. However, it's crucial to scrutinize the bottom line, as high revenue figures don't guarantee financial success if expenses outweigh earnings.

If your bookkeeper isn't sending you these reports, we highly recommend you request them.

Addressing Underlying Financial Issues:

Increasing revenue won't solve underlying financial issues. Consistent struggles to maintain a healthy bottom line warrant deeper analysis. Are expenses justified? Is your pricing strategy optimal? Neglecting essential expenses like salaries and wages can impact financial stability. Seeking professional guidance from an accountant may be necessary.

"Knowing is half the battle" ~G.I. Joe

Taking Action:

Understanding your numbers is crucial, but acting upon them is equally essential. Utilize insights gained from financial reports to make strategic decisions and drive your business forward. We're here to support you every step of the way, whether through weekly sessions or personalized strategy consultations.

Final Thoughts:

Success in business requires more than just being in business—it's about understanding your finances and leveraging that knowledge. Businesses don’t plan to fail, they fail to plan. So, let's remember, it's not just about having the numbers; it's about understanding them, analyzing them, and using them to drive your business forward.

Let's connect, learn, and grow together. Your feedback is invaluable, so feel free to drop any questions or topics you'd like us to cover in future sessions.

Thank you for joining me today. Let's continue working hard and building prosperous businesses.

Click here to schedule a Free Strategy Session!

I would love to meet you.

All the best,

Becca Heissel

P.S. How to manage a money and Entrepreneurship is taught in schools!

It's not your fault. No judgement.

This is the time for you to learn.

You just have to take the first step :)

Keep going Entrepreneurs, You are AMAZING!!!