Where Does Your Money Go?
Each month, there is a flow of money into and out of your business. To appropriately capture both sides of that "flow", you need to have a method in place to keep track of it on a consistent basis.
There are many products on the marketplace that can help with this ranging from Excel to Quick Books to more advanced systems.
Things to consider when selecting how to keep track of your hard earned (and easily spent) money:
- What level of detail do you need? It is easy to make this more detailed and demanding than your business may require. The level of detail you need is tied to the information you need to make sound decisions.
- Who is going to be collecting and loading the data? As the business owner, you need to understand how the system works-but you do not need to be the person that actually does the data manipulation. Owners need to focus on strategic issues (loading data is not strategic).
- How often are you going to look at what the system can provide? As a business owner, looking at your cash flow once a week is a minimum (many companies look at it daily). What level of comfort do you need for your business to run effectively?
- Budgeting-the collection of the data (and more importantly interpretation) will go a long way to facilitating the budgeting process.
- Consistency-assigning revenue and expense accounts will provide consistent period vs. period opportunity for review.
Action TIP OF THE MONTH - How to stay in contact with your customers.
If you are not keeping in touch with them that often, you are at risk of losing them. Make the plan TODAY to reach out to them.
Some options to stay in front of your customers include:- E-newsletters-these are effective and more affordable every day
Regular newsletter-you have their contact information, make use of it.
Remember to include an offer so they have a reason to visit you NOW. Help your client feel the urgency to visit your business!
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