A wonderful feature of most accounting systems is the financial dashboard. The dashboard gives you a quick assessment of your business by providing key pieces of information at a glance. You’ll see vital statistics regarding accounts receivable, expenses, and a graph of your income statement. The home screen will also alert you to issues with downloaded bank transactions that need your attention.
Another delightful feature of an accounting system is the ability to run basic financial statements. A basic set of financial statements consists of a Balance Sheet, an Income Statement, and a Statement of Cash Flows. The Balance Sheet gives you a snapshot of your business at a point in time showing you the amount of Assets, Liabilities, and Equity. An Income Statement shows you whether your business was profitable over a given period of time such as a month, quarter, or year. The Statement of Cash Flows shows you how much money is coming into and going out of your business.
To be successful in business, every owner must answer these three questions:
- Are you making a profit? See the Income Statement.
- Do you have enough cash to pay the bills? See the Cash Flow Statement.
- Are you building net worth or destroying it? See the Balance Sheet.
Schedule 30 minutes every month to go over your basic financials. At Glass Consulting, we’d be happy to help walk you through that process. Call (785) 838-3708 to speak with Edwina Glass today.