How does your Business Stack Up?
Most business owners know their business in terms of products and services but are very unaware of the finer points creating their financial statements. While this may be common it isn't how profitable business become profitable.
At some point you, as the owner, will have to decide the level of expertise you bring to the accounting table of your business and how that may be negatively affecting you. The hope of any business owner is for that moment to come soon enough to be effective and late enough to be affordable.
Here is a link that can help you decide if you're still in your "Goldilocks Zone". Just for disclosure, we did not receive any remuneration or recognition from this website for posting this link - I just thought it would be helpful to my readers. If you do a search for business statistics you are likely to come up with multiple others, this one worked for me.
Put your business structure and total annual sales information in and then choose your type of business and the system puts out an Industry Benchmark for financials in your particular industry with your particular structure. This means you can open up your own books and, based on percentages, compare your bottom line with the industry standard for business just like yours. If your numbers are significantly different your books are either incorrect or they are telling you important information you can't afford to misinterpret.
It's now time to call a professional and have them see what's going on. Of coarse, we think you should call us. But at the end of the day it's not so much about you choosing us as your accountant but about getting the assistance you need to grow your business at a price you can afford - if you've found that someplace else, great!
A simple review may be all that is necessary to establish things really are still okay and then you're off for another six months or a year before you need more from us. But isn't the time you took to talk with someone worth that profit margin this year and the next?
Take a look, see how you compare, and make the right choice for your business.