Numbers are everywhere especially this time of year. You cannot turn your head with seeing them in the stores both physical and online to spend and save as well as on the calendar as a constant reminder of deadlines. Yikes, only days left until Christmas for those who celebrate! The clock is ticking.
Collecting numbers for your accountant is timely as the end of 2015 is less than 2 weeks away. This alone is enough to warrant hiding under the covers, but it could also be the best time to set up new systems to simplify your life in 2016.
As a harried business owner or busy executive, responsible for a department including the financial responsibilities, this can be quite the headache. Even if you have an accountant or someone who manages a great deal of it, you still likely have to feed them with … more numbers.
In business there are many numbers to keep an eye on. The balance sheet of income and expenses is just one. Knowing your profit/loss is key to moving forward. If you don’t track regularly, the end of the year comes and you are surprised! The surprise may be just as devastating if you made more but didn’t budget for your corporate or business taxes, so now there is scrambling to do. The government does not wait without an incredible financial hit.
Track your numbers using a trusted profit model. With this information you can sort out your cash flow, as you are clear about your operating costs. For some businesses there is a seasonal component that you have been following that affects your income but have done little to either shift the expenses or find a creative way to bring business during those slower months. This is possible to do through a process of strategic questions about your big picture or vision for your business and your life.
Sometimes expenses can be shaved by looking at the numbers you look at numbers spent on large purchases, rentals and leases. Shifting amortization schedules can make a huge difference in your bottom line.
You need to know your numbers to answer these questions and more.
Is your business set up to hand down to your next generation?
Will you be comfortable?
Could you sell your business and make a handsome profit where you can live on the interest easily?
Can you even think about retiring from your business?
Do you know what it will take to become a millionaire?
Have you recently tracked how you spend your time? For 2-5 days track what you are doing in 15-minute increments to see where you are spending your time. Is what you are doing moving your business forward? Is it making the business money? Does it make you happy? Are you wasting too much time on actions others can do, leaving you not enough time to do what you love that will create change in your business?
These things are all important and I have created a Leadership Academy for Business owners and Executives to support each other and grow together. You will have all the tools necessary to build a strong business through implementation that will take you to the next level, be it $500,000, $1 million or $100 million.
The Premier Leadership Academy will launch in January 2016. If this has peaked your interest and you want more information, please contact me!
p.s. If all of this is overwhelming then you may want to read this. Enjoy!