As we approach the end of 2017, small business owners are looking back on the previous year and preparing for the next. In both situations, auditing your
financial practices should be a vital addition to your task list. Knowing the financial health of your company influences the key decisions that you
and your team will make in the coming months. This practical process also helps identify financial management practices that seem ineffective or even
Let's discuss a few ways to efficiently audit your small business practices.
- Designate and delegate: Knowing what your team members and company use for various processes and transactions helps keep everyone accountable.
Designate items such as a company credit card, a company bank account, a specific financial record-keeping software (Quickbooks, Freshbooks) and a
designated financial "point person" (don't hesitate to add this person to your staff if need be).
- Plan, budget and execute: Your business accrues a lot of unexpected expenses some years, but for the most part, your team can figure
out the common items for which you need to designate funds as well as sections of the budget that can be eliminated or cut back. Seek out expert information
on vendors and item costs before making any decisions that could waste money for more important endeavors.
- Provide financial management updates through weekly or monthly meetings: Obviously, your time as a small business owner should not be
bogged down with all-day meetings, but a weekly or monthly financial management meeting is a crucial investment for your company. Choose the specific
members for the meetings and optimize your time by keeping things short and having a designated agenda to review and push forward. Look at key metrics
such as profit and loss statement reviews and balance report analysis.
- Set measurable goals and review progress: Objectives, goals, targets. Whatever your company's lexicon, what you plan for is something
you need to be sure you can measure. Sales and marketing departments will most likely make up this responsibility, but be sure to keep everyone else
in the company aware of what you want the company to accomplish and the progress that your team makes. For sales processes, pipelines and guidelines,
be sure to have ample documentation that can be access at all times.
In need of some further tips or advice? Email email@example.com