How and when do I review my finances?

 Photo Credit ivorymix.com

Photo Credit ivorymix.com

So, you have a bookkeeping system in place and all the data is entered. Now what? This is where bookkeeping gets fun. During the first week of each month, set aside some time to look over the reports you have created for the prior month and see how your business is doing. Have your revenues grown? How do your expenses compare to last month? Is the revenue enough to cover all the expenses? This is a time to look back and see how your decisions have affected your business. You should also look forward to the next few months to see what you can do to increase your profits.

I have created a free printable worksheet to help you analyze your financials and create action items for the next month. Here are a few tips on how to use it to grow your business.

  1. Go to your calendar right now and schedule a recurring event during the first week of every month. Give yourself some time to reflect on your financials and goals for your business.

  2. Find someone to help you stay accountable about sticking to your financial analysis. This could be your bookkeeper, a fellow business owner, friend, or family member.

  3. Write out the answers to each question. Hang the completed “action items” page in a place where you will see it regularly to remind yourself of your goals.

Next week, we will cover how pricing your services is affected by all your business’s expenses. If you have questions before next week, feel free to contact me.