My client said to me, “It seems like not all of the cash that I have earned is making it into my account.” I looked over the income statement and found operating expenses were high given the amount of revenue we were working with. It also looked like there were a lot of recurring expenses that could be reduced. (reference to another article)
I asked my client (fairly new client to me), “Where is your budget? Do you have a plan for the year you and your previous accountant put together?” My client replied, “Oh no. I have never had anything like that, I make my purchase decisions based on how much money my bank account has in it.” It still shocks me to this day; how many business owners operate this way. Every business that exists on the planet should have a yearly budget.
Having a budget is the only way to effectively monitor expenses and find when recurring expenses have varied from their normal amounts. I highly recommend to any and all business owners that I meet that they need a yearly budget and they need to be monitoring that budget monthly, and sometimes semi-monthly.
It is so crucial to the success and operation of a business. It is unbelievable the transformation that some businesses take on after they have a budget in place and stick with it. Do you want to change how your business operates? Do you want to experience a transformation in cash flow and cash surplus in 2022?
If you are serious about changing how your business operates, and how cash flows through your business, and you are ready for a transformation in 2022, schedule a free call with me below!