Happy Boss Friday! How to know if your Business is Profitable?
Small Business- A Financial Manager Do!
As the financial manager of my family’s small business, I always made sure to do the following in our QuickBooks program:
- Search for the bank statement in the mail (email these days).
- Reconcile it ASAP and make sure all expenses and sales transactions are coded correctly.
- Each Boss Friday (the First Friday of the First Full Week of the Month) I spent time between 1-2 PM studying our money situation, seeing what worked well, what didn’t, and how could we do better.
Now, I’m restarting my business after three years off for a break.
And I don’t have QuickBooks.
Save Money or Focus more on Sales
But I need to analyze my Boss Fridays. I need to know where I stand so that I can either make swift changes to save some money or focus more on sales this next quarter. Check this article on how to increase sales and also check the article on how to cut your expenses.
Analyzing and Tracking Expenses without Quickbooks
In this super long blog post, I thought to share with you exactly how I analyze and track my expenses without QuickBooks. Please check out each mini-training video!
So, as you can see, some Excel handiness comes into play. No worries if you have a PC or a MAC. Sometimes the filter button is placed in a different spot. And, all banks are different. Be patient, call up your banker if you need help, to figure out where to download your transactions from the quarter.
Please try your best to not get overwhelmed. It’s better to take care of this now at the beginning of the year, rather than at the end.
For example, if you have a runaway monthly cost, perhaps an automatic transaction you forgot about, it’s better to catch that sooner than later. That way, you don’t have money leaking from your account quicker than you realize.
Categories are so important! Many entrepreneurs procrastinate on this step because they don’t know what categories to use. When they download QuickBooks, usually QuickBooks has already pre-populated the Chart of Accounts.
Good for you! You don’t need to deal with that right now! Simply watch the next video to see the downloadable IRS form I use to choose my categories. Keep it simple!
Now, if you’re unsure if you’re doing the right steps, always feel free to reach out to me. I’m offering Profit Breakthrough Sessions through my website! Scroll down below to find the promo code.
Learning your Business and Profitability
Finally, thanks for sticking through! I hope that you were able to apply these lessons to your own business. It’s so important to study your numbers to learn what’s going on in your business and knowing if it is making a good profit.
Often, we focus on new sales, promoting, branding, etc. That’s all fine and good! Just don’t forget that you have a treasure trove of information that can quickly get you profiting stronger once more.
Reach out to me if you have any questions. Apply for a free consultation here.