Most small business entrepreneurs do not have a solid grasp of their financial situation at all times. They rely too much on external bookkeepers/accountants to keep the score. In my experience, this is usually too reactive, not up to date and not focused on achieving profit goals, but minimising taxation for the company. It is like putting the cart before the horse, because you have to make profit first before you need to pay tax.

Here is a financial management checklist for you to consider. Do you have the following:

– Accurate, up-to-date accrual based accounts
– Cash forecast for the next three months
– Profit forecast for the next month, updated weekly
– Sales and profit budget by month for the next 12 months
– Monthly management report comparing budget and actual profit and action plan going forward

Again, in my experience, a very small minority of businesses have all of the above. This can be rectified rather quickly. Otherwise the business is flying blind and at significant risk of failing.

Important: Before You Go

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Important: Before You Go

Enter your first name and main email below to claim your free Business Owner Cheat Sheet. It includes my Top 10 Tips to add massive value to your business fast!

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