This month: Budgeting and Business Performance Metrics
Are you measuring how your business performs? The first step needs to be mastering your budget to make sure your operation is on track with regards to the Profit and Loss statement. We find that many entrepreneurs and small business owners have a basic understanding of their operational costs, but they don’t go through a formal budgeting process. That can be a mistake. Without a budget you can’t plot your company’s future and achieve your strategic objective. In addition, key performance indicators (KPI’s) are your most important performance metrics to monitor closely. These numbers will tell the success or failure of your most important goals and provides management the insight to make changes that have the most dramatic impact on your business.
The Three Basic Steps to Building Your Business
One of our services is general business consulting. . In fact, if you think about it, business consulting is the primary part of all of our services, whether we are acting as an interim CFO, providing accounting services, or counseling on HR issues. All of our services are a form of business consulting to help our clients achieve their business objectives. And in our experience, you can distill high-level business advice into three basic steps: understand your goals, set measurement standards, execute an action plan. Read more.
Embrace the Joys of Budgeting!
Very few business owners run their business by the numbers. They have a basic understanding of income and expenses, but amazingly few of them use a formal budgeting process. To build your business you need a budget that complements your goals and objectives. Your numbers need to support where you are trying to go. Your budget is a critical part of your business blueprint for success. If you don’t plan you may never meet your destination. Read more.
Strategies for Budgeting Success
The annual budget is your financial plan to build your company, with estimates of revenues and expenditures. When creating your budget, you want to use past financial information to project into the future, modifying the figures in order to set your course for the coming year. You also need the financial intelligence to allow you to change course during the year. The first step is to gather your P&L information and organize it. Read more.
Managing Your Cash: Cash Flow is King!
A cash flow forecast needs to work with your operational budget. Many businesses have failed because they are so focused on the their future growth that they fail to worry about managing their daily operations and run short of cash to deal with critical expenses such as payroll and rent. By creating a cash flow forecast you can map income to outflow in a way that you can ensure you keep the lights on so you can reach your long-term goals. Read more.
March 2011 Newsletter
This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions.
Copyright 2011, Pacific Crest Group, All rights reserved.