“I know you think you understand what you thought I said but I’m not sure you realize that what you heard is not what I meant.” Alan Greenspan
As a small business financial advisor, I aspire for my clients to experience business success. And one method to achieve success is for them to comprehend the financial side of their business.
From that paragraph did you get the message I intended, or did you just read: “blah, blah, blah”
How about this statement:
I want you to be successful and understanding your business’s numbers helps you make smarter business decisions.
How Financial Reports help with your small business story
One way to tell the story of your small business is through Financial Reports. Reporting provides insights into what is happening with the business. How are sales trending, how about expenses, how is cash really being used?
When you look at your business’s financials does it look like this:
Or do you feel like your numbers look like this?
How your Financial Advisor can Help
Your financial advisor is the one who helps to take your small business numbers from a jumbled mess to an orderly message.
An orderly financial message is conveyed through various reports. Reports are used to understand the financial story of the business. This information helps you to make more informed decisions. And when you make informed decisions your business is more successful!
Some of the Most Common Financial Reports
- The Balance Sheet
- The Income Statement
- Cash Report
- KPI’s (Key Performance Indicators)
- Sales Reports
- Donor reports
- Variances of Budget vs Actual
- and on, and on…
Because each business is unique, the reports a business finds useful are unique.
In the next post we will leap into the Balance Sheet.
Share below if there is something financial about your small business you wish you knew more about.