Do a Summer Financial Checkup for Your Small Business
Summer is prime time to assess your business finances and make data-driven decisions to finish the year strong. Follow these 5 steps:
1. Analyze Revenue and Expenses
Review income and expenses from the first 6 months.
Identify trends in your financial statements.
Compare actuals to original budget projections.
Assess accounts receivable/payable cycles.
Note seasonal or cyclical patterns impacting cash flow.
This financial analysis provides clarity on where your business stands today.
2. Evaluate Profitability and Pricing
Calculate profit margins by product/service line or division.
Determine which offerings are most profitable.
Look for opportunities to improve pricing strategies.
Reduce unnecessary costs without sacrificing quality.
Fine-tuning pricing and costs directly impacts your bottom line.
3. Update Budgets and Financial Plans
Revise financial plans based on assessment findings.
Re-forecast budgets and cash flow needs.
Align projections with your updated business objectives.
An accurate budget and projections are critical management tools.
4. Collect Customer Feedback
Survey customers on satisfaction with your products/services.
Identify pain points to address and improvements to make.
Happy, satisfied customers drive revenue growth through repeat business and referrals.
5. Consult a Bookkeeping Professional
Bookkeepers and CPAs provide objective insights into your finances.
They can advise on accounting practices, growth strategies, and tax planning.
Leverage their expertise to make smart financial decisions.
A summer financial checkup identifies your business strengths and opportunities. Address any issues proactively. Reach out if you need help! Our bookkeeping team provides customized solutions to small business owners. Let’s discuss your goals and build a growth strategy together.
Note: This email blog article is for informational purposes only and should not be considered as professional financial advice. Always consult with a qualified accountant or bookkeeper for specific guidance tailored to your business’s needs.