It’s mid-year…Now what?
Second quarter has come to an end, now what? It’s time to review your numbers!
Analyzing the first half of the year will give you a view of how your business is performing. This will help establish your baseline and allow you to determine where you go from here. Determining now what is and isn’t working will better prepare you to achieve your 2019 goals.
When reviewing your numbers, you’ll want to make sure that all transactions are accounted for and all accounts are reconciled. This ensures that the data is complete and accurate so you’re looking at the full picture.
There are many benefits to comparing your income and expenses on a monthly basis. Doing so allows you to see four main things in your business:
- How much revenue each item or service is generating
- How much is being spent by category
- Creating and following a budget
- Measuring the progress towards achieving your goals
Knowing how much revenue is being generated specific to your services and/or products allows you to focus your attention on the items that provide you the greatest return. This will also show you what services and/or items are no longer serving your business well. With this information, you can strategically make decisions on any changes you’d like to make going forward.
By seeing how much is being spent by category, you will learn specifically where your hard-earned money is going. This will allow you to decide if the expenses are truly necessary. If they’re not, make the necessary adjustments. Cancel those subscriptions that are no longer serving you! Every dollar counts! Making these adjustments now has the potential of saving you hundreds, even thousands of dollars still this year.
Comparing your monthly income and expenses allows you to make decisions for creating a budget that is realistic and easy to operate your business with. If you’ve never created a budget or never been able to operate within the budgeted expense amounts, I’m willing to assume that the proper information was not fully available at the time creating the budget. Getting clear on your spending not only reveals the true numbers, but also your habits. The good habits and possibly those that hold us back. Once we can see these things clearly, we are able to plan for and/or adjust the real-life scenarios that impact your bottom line. It is important to be completely honest with yourself here to make the greatest impact.
When you have this information at your fingertips, you are empowered to make the necessary adjustments that help keep your business on track to achieve your goals. Being confident in your finances allows you to show up stronger for your clients and serve them at a much greater level.
Whether you’ve started working on this or you’re not sure where to start, schedule a complimentary strategy call with me by CLICKING HERE! I would love the opportunity to talk with you and help you come up with a plan that will move you forward in your business today!
To your greatest success,
President, Spader Group, LLC