I’d like to briefly speak to you about Financial Statements and why is it important to know your numbers.
I have actually presented on a recent Facebook live a three-part segment on the importance of keeping track of your numbers.
First, it helps you plan. And if you are not planning or setting goals, you absolutely need to. A good bookkeeper should ensure you are doing this. I know I encourage everyone, from the administrative support person all the way up the ranks to the business owner. Goals are critical for the success and future of the business.
Tracking your numbers helps you know whether you’re profitable. Or even if certain segments of your business are profitable. Knowing what your numbers are can help you determine if it is costing you to offer that product or service. Years ago, I had a business partner who insisted we sell a certain product and a certain price. When I analyzed the cost of that product, I explained to them that for every one they sold, it was costing them $1.50 more than the sale price.
I often say, are you really paying to stay in business or are you making money?
Knowing your numbers helps you with tax planning. It is important for u s to pay our fair share to Uncle Sam and we don’t want to incur penalties for not paying enough or paying on time.
If you have more questions, I suggest consulting with an experienced bookkeeper.
