Many small business owners conduct reviews at the beginning or end of the calendar year. However, June is the perfect time to do a mid-year check-in to assess your current situation and course-correct to ensure that your business is on track to meet year-end goals.
Financial statements form the foundation of your business “report card” – the tool you use to evaluate how your business is doing relative to what you planned. Yet there are many small business owners who mistakenly believe that financial statements are unnecessary. As long there is money in the bank to pay their bills, they are happy.
The fact is, there are countless reasons why you need financial statements to effectively run and grow your business. Here are just a few:
Generating financial statements is the first step in managing your business finances. Reviewing them is critical in order to know where you stand. Check year-to-date sales figures against projections, examine income and expenses, and determine where to make adjustments.
Getting your finances in order now will help you identify and resolve issues that have developed during the past six months – and position your small business for optimal performance the rest of the year.