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10
Questions About Your Business You Should Know!
Do
you have a customized accounting or bookkeeping system?
Can you answer these 10
questions about your business?
Take This Quiz:
1.
Were my total sales up or down last month? And where they
designated by category?
2.
What was my total gross profit last month? And was it
designated by sales category?
3.
What is my gross profit per item?
4.
What were my expenses by category last month?
5.
Who owes me money and how much?
6.
Who’s behind in paying me and by how much?
7.
How much inventory do I have: in total and by item?
8.
To whom do I owe money and how much?
9.
What was my profit last month?
10.
How much do I OWN, and how much do I OWE?
Were my total sales up or
down last month?
Were
they designated by sales category?
You
need to know: If your sales are up, you’ll need extra cash to
buy replacement inventory. If your sales are down, you’ll
want to pull back on inventory purchases. Sales increases in a category
can mean a new growth opportunity. Sales decreases need to be
investigated to determine the reason for the loss.
What was my total gross
profit last month?
Was
it designated by sales category?
You
need to know: Gross profit shows the profit remaining from sales after
subtracting the cost of the products or services you sold. Changes in
gross profit show whether or not your pricing strategies are working.
Cutting prices to increase sales can hurt you if it reduces your gross
profit.
What is my gross profit per
item?
You
need to know: Pricing should be based on profit goals rather than
simple conjecture. By raising the prices on some items and selling
others near or below cost, you can change your inventory mix and
increase gross profits. An increase of just 1% may add thousands of
dollars to net profits. You can give sales incentives that will cause
employees to sell the most profitable items instead of the easiest ones.
What were my expenses by
category last month?
You
need to know: Are payroll costs too high? What about other costs, such
as insurance and utilities? In order to cut back on expenses, you must
first know which costs are excessive. Also, recording your expenses
each month ensures that you get the maximum tax deductions.
Who owes me money and how
much?
You
need to know: You can’t expect to get paid in full unless you
tell customers exactly what they owe. An itemized, neatly printed, and
up-to-date monthly statement tells customers that you expect to be paid
on time and according to your payment terms.
Who’s behind in
paying me and by how much?
You
need to know: Customers who fall behind need to be contacted
immediately and continuously so that it doesn’t become a
habit. Also, before you approve a new order from a customer,
you’ll want to know if that customer paid you on time for the
last order.
How much inventory do I have:
in total and by item?
You
need to know: If you’re running low on an item, you can
reorder in advance and never run out. Plus, you can avoid rush delivery
charges. If you have too much of one item, or too much inventory in
general, you can cut back on your inventory investment. Also, you can
compare a physical count to the books and identify a shortage problem
before it threatens to put you out of business.
To whom do I owe money and
how much?
You
need to know: Many vendors offer discounts for paying bills in less
than 30 days, which can add up to big savings on an annual basis.
Paying your bills on time will increase your chances of qualifying for
business credit. Plus, you can plan for your cash requirements and
reduce the need to borrow from a bank or your own funds.
What was my profit last month?
You
need to know: A monthly profit figure gives you the financial bottom
line, and lets you know where you’ve been and where
you’re going. Plus, you can save thousands of dollars, on
year-end tax return fees, and plan for taxes in advance.
How much do I OWN, and how
much do I OWE?
You
need to know: Keeping track of your current assets and liabilities
allows you to plan for your cash needs, and helps you stay in
compliance with loan agreements. Plus, you’ll be ready to
respond to questions on demand from suppliers or potential customers.
Call Us Today for Membership[p
Opportunities to help you know this vital information for your business!
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