You probably started your business for many reasons—besides a love for small business accounting. Maybe it was to turn your passion project into your full-time job, or perhaps you just wanted to become your own boss.
While you don’t need to become a licensed accountant to make your business successful, there are a handful of financial metrics you should have a handle on.
In this eBook, we’ll provide you with some key ways to track your business’ financial health.
Topics covered include:
The five metrics every business owner needs to understand
These include income, expenses, cash flow, accounts payable and accounts receivable. Did you know 40% of small businesses cited paying operating expenses as a financial challenge? And 82% of small businesses fail due to cash flow reasons. This section offers tips on what you should track and how often you should check these metrics.
Become your own profit expert
This person, most likely you or your accountant, finds opportunities in the business finances to streamline operations and capture additional profits wherever possible. There’s valuable information hiding in plain sight in your business’ financial reports; a true profit expert recognizes this and uses this information to their advantage.
Outsource when needed
As a business owner, you’re likely getting pulled in a million different directions every day. You don’t have the time to do everything it takes to keep your business running smoothly. Perhaps spending hours digging into financial reports just isn’t your strong suit; in that case, read about a few ways to outsource your accounting process profitably.
Understanding what’s really happening financially within your small business requires effort and discipline as a business owner. It may require you to learn and master a few additional skills, but the suggestions in this eBook are a good way to start and will help you have a better understanding of what your business is doing.
Download this eBook to learn more about how to keep your business financially healthy.
Learn how OnDeck can help your small business.
Copyright © 2023 SCORE Association, SCORE.org
Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.