Accurate and timely financial statement preparation is a critical monthly task necessary for the success of your business. Today’s business owners feel pressure from many angles to provide reliable, timely financial information.
Externally, stakeholders and regulators demand transparency and reliability. Internally, you and your team leaders require information to support time-sensitive business decisions.
Accurate and timely financial reporting is a key deliverable that can intrinsically increase the value of your company. It is crucial to have systems and processes in place to produce quality, reliable, efficient and well-timed reports.
One of the most widely used programs for small businesses is QuickBooks. This program is supported by numerous CPA firms and bookkeepers and is very reasonable to purchase.
When you set up your financial reporting system consider these questions:
- What were your current, prior, and past month’s profits or losses?
- What was your gross margin on the company’s key products or services sold?
- What is your available cash balance?
- How much do you have invested in inventory?
- What will you receive in the future on past sales (receivables)?
- What do you still have to pay on past purchases (payables)?
- How much do you still owe on your long-term debts?
- Did you have positive cash flow from operations?
- How much did you pay down or borrow on your long-term debts?
- Did you receive capital contributions or make distributions?
- Are you operating efficiently?
Running your business without accurate financial statements is like making a cake without a recipe or building a house without a blueprint. It can be done, but in the end will you have anything of value? Will you know how to reproduce the results to make or increase future profits?
If you need assistance with setting up your financial reporting system, reach out to the ProCFO team in Bend. Jim Jans, Scott Lauray & Steve Bahr at ProCFO are available to help you grow and retain your wealth.