To take your business to the next level, you need the ability to forecast growth and make decisions on where to invest.
Yet accounting ranks near the top of most integrators’ necessary evils. Most just do enough to make the taxman happy.
But accounting can be more than just paying your taxes. Great accounting can reduce chaos because it allows you to clearly see what’s happening in the business, make decisions on fact versus hunch, and know what money you have to invest.
Why? Because what can be measured can be improved. Accounting gives you the hard data to make decisions and get accurate feedback on them.
In short, solid accounting practices are a sound business tool that allows you to see around corners, forward invest, and get clear answers to your big business questions.
That doesn’t mean your current accounting practices are wrong, but that better accounting will help your business achieve new performance heights.
Not sure where to start? Here’s what to focus on:
- Cash. The lifeblood of your business, this is what’s in your bank account and inventory allocated to jobs, minus customer deposits.
- Profit. The difference of what you collect from your customers in revenue, minus the cost of goods and overhead. The key is to have good metrics to measure profit consistently, not just at the end of the year.
- Retained earnings. A true measure of success, retained earnings are the profits after distribution to owners. Reliable accumulation of retained earnings signals an investable, stable asset.
If you want to get a clearer picture of how you can use accounting to make smart business decisions, head to www.growwithvital.com/coadownload to get our Chart of Accounts download and begin seeing the whole financial picture.
Stay VITAL,
Matt & the Team
