Wow, there is so much you can learn by understanding your numbers and using them to make financial decisions.
Remember Jenna? Jenna was growing her business but hid from her accounting because it was confusing to her and she didn’t have time to learn a new skill. We helped Jenna get the financial information she needed to make more strategic spending decisions so she could increase her profits and take home a bigger paycheck.
Let’s review what we have covered so far. Make sure you are writing down this information in your Profit Planner. Our clients treat their Profit Planner as their financial diary.
Step 1: Revenue Goals
Step 2: Financial Goals that support the business you are creating
Step 3: Monthly financial review of revenue (compare this information to your goals in month1)
Now it’s time for Step 4, make our way down your to the expenses of your business. Remember the goal is to start making business decisions with your financial data.
Review your historical expense by asking yourself
- What percent did your expenses grow year over year? Why?
- What expenses are consistent month over month?
- Do you need these expenses? Are the costs that are helping you achieve your goals?
- Are your expenses growing faster than your revenue? What changes can you make to prevent this from continuing?
One of my favorite quotes is: “Beware of little expenses. A small leak will sink a great ship.”
Determine 3 expenses that you can eliminate today, take action on terminating those contracts.
Do you want more ideas on how you can create a more profitable business? The Profit Planner Guide will walk you through monthly financial education with daily action tasks. Visit Profitplannerbookkeeping.com today to download the first 3 weeks of the Profit Planner Foundation.