- Your Accounting System – Every business should have an efficient accounting system to collect all the business’ financial information, classify and organize it, and summarize and present it in the form of financial statements and reports. Your accounting system can be, and should be, the place you turn to and rely on for safety, certainty and reliability. It’s one of your most potent starting points for decision making and action.
- Financial Statements that make sense – Financial statements are the financial quantification of your business. Financial statements are more that an accounting exercise; they are an accurate, objective picture of your business. Everything in you financial statements is a reflection of something real in your business. If you have financial statements but don’t understand them, you don’t know your business.
- Your Basic Operating budget – A budget is a forecast of future revenues and expenses. It is the financial reflection of your expectations for business operations in the near future. Budgeting is one of the most fundamental tools of good business management.
- Your Cash Flow Plan – More businesses fail because of lack of cash than fail because of lack of profit. Cash is to your business as fuel is to your car – if you run out, you stop. Many businesses have gone into bankruptcy while maintaining a profit. They simply ran out of cash. A primary goal of any business is to keep its cash flow healthy.
- Your Business Control Systems – Business control systems help you move money into and out of your business effectively. They are focused around moving and controlling the money that all other business systems need in order to function.
- Your Financial Strategies to set you on the right path – Business owners have two sets of financial objectives related to their business. The owner’s personal financial objective is to optimize the long-term payout of the business. The owner’s financial objective as chief executive is to maximize the value of the company. You need sound financial strategies to allow these two objectives to co-exist.