In addition to the profit and loss statement (P&L) and cash flow statement, balance sheets are one of three key financial statements businesses use to gauge their health and efficiency.
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An income statement (also commonly known as a profit and loss [P&L] or earnings statement), answers a very important question: Is your company profitable? The accuracy of your P&L is critical to ensuring your business is running as efficiently as it could be and to identify opportunities for increasing revenue and/or decreasing costs.
Business owners know steady cash flow is critical to long-term survival. When owners struggle to collect payments, they have less cash on hand to manage operations, pay employees, or take care of other incurred expenses.
While collection problems are common for small businesses, employing some simple strategies to strengthen accounts receivable policies, practices, and technologies can have a dramatic impact on decreasing missed or late payments.
Here are three strategies to help you get paid by your clients more quickly and easily:
There are few things in this life that are more exciting than seeing your startup business get off the ground. It’s exhilarating to see your vision ripen to fruition. But as the volume of business increases, it becomes something of a juggling act, doesn’t it? I mean, you’re probably already pushing your resources (both capital and human) as far as you can, and feeling stretched out rather thin. Ultimately, you’re going to need to transition from the DIY mindset, and start delegating some of your responsibilities to other people, if you ever have hope of sleeping or eating again.
Accounting is an important aspect of every business, no matter the size. Up-to-date financial information about your company can help you gauge how the business is currently doing, forecast how it will do in the future, and make plans that can increase success. Despite all the benefits of accurate accounting, many small business owners view it as a necessary evil. That is because the bookkeeping duties of a growing business can be cumbersome, especially if you have other responsibilities within the company. If this is how you feel about your accounting responsibilities there are three changes you can make to streamline the process and free you up to work on other aspects of your business.