A budget is one of the most important keys to business success. However, only about half of small businesses create a documented budget, according to a 2021 Clutch survey. As Dave Ramsey says, “A budget is telling your money where to go instead of wondering where it went." Creating a budget
Don’t drown! Know your numbers and save your business
Don't ever let your business get ahead of the financial side of your business. Accounting, accounting, accounting. Know your numbers." Businessman Tilman Fertitta reminds us that it might not matter how great a product or service you offer. If you don't keep on top of your financials and "know your
Profit & Loss Statement: How do you Measure Up?
As a small business owner, how do you measure up in terms of revenue, expenses, and net income? Are you able to quickly answer these questions: How much did you earn in sales last week? What is the monthly cost of running your business? What is your net income (or loss) so far this
Owner’s Equity Time Lapse
In previous posts, we brought the balance sheet into focus and then adjusted our aperture to focus on three important balance sheet analyses. Now we'll take a closer look at one of the main sections of the balance sheet - Owner's Equity. Think of owner's equity in terms of a time-lapse. A
Adjust Your Aperture: 3 Balance Sheet Analyses to Focus On
When we discussed the basics of a balance sheet, we likened it to a snapshot of a company's financial position: what a company owns and owes at a particular point in time. The most important element of a good photo is the ability of the photograph to communicate with the viewer. It should be able
Say Cheese! – Bringing the Balance Sheet into Focus
The Balance Sheet provides a snapshot of a company's financial position - what the company owns and what it owes - at a particular point in time, often at the end of a month, quarter or year. Business owners, investors, and lenders use the Balance Sheet to assess a company's financial strength and
Where’s My Money? The Importance of Reviewing Your Statement of Cash Flows
Question: My Profit & Loss Statement shows a positive net income last month, so why do I not have any money in my bank account? Answer: Many business owners struggle with this question, so you are not alone. The fact that you are reviewing your Profit & Loss Statement regularly is an
Spring Cleaning for Quickbooks
Spring is finally here! Whether you fully embraced or merely endured this past winter in Minnesota (or anywhere in the Midwest!), it's safe to say that spring has been a welcome sight for everyone! Something about this time of year makes us want to throw open the windows and deep clean the house