Note: This blog first appeared in the Arlington Chamber of Commerce Blog.
Like many business leaders, you made a new year’s resolution to stay current with your financial reporting. Now that it’s Q2, it’s time to make sure your resolution is staying on track.
Don't Just Keep Up — Get Ahead
This is the perfect time to take a big-picture look at the health of your business. Are there ways you can optimize your approach to achieve efficiency and gain a competitive advantage? Technology advances quickly, and there may be better solutions available for your business today than there were when you started — or even a year ago.
For example, it's now easy for small businesses to know their financial status in real time. Using records that update automatically, you can analyze your key performance indicators. Your KPIs can tell you at a glance how your business is performing relative to your budgeting and forecasting (which, by the way, will also be vastly improved with better financial reporting).
There are many other ways to optimize your business when you keep up with reporting and record-keeping. You can, for instance, use real-time information to determine which project, job or product lines are overperforming or underperforming. The sooner you have that information, the sooner you can make the appropriate adjustments to minimize losses and maximize profits.
Also, have you looked into the provisions of the Tax Cuts and Jobs Act to see how they might benefit your business? You might be missing out on some new deductions — or claiming deductions you're no longer entitled to. You might even find that you would be better off restructuring your business altogether.
Treadmills Don't Help Financial Fitness
To achieve your financial fitness goals, make sure you have the best resources available for your business' current needs. For example, businesses that employ in-house bookkeepers might have experienced frequent turnover in the position, which causes disruption, lost time and expense (estimated at $4,000 per hire) that result every time you have to replace someone. Outsourcing bookkeeping can provide the long-term bookkeeping stability your company needs.
A Feel-Good Moment That Lasts All Year
Achieving financial health is a lot like achieving physical health. You know what you need to do — and you know you'll feel a lot better when you do it.