Bows, Budgets, & Business Plans
Autumn has gently rolled on and brought in the colder weather presented by Mr. Jack Frost himself. It’s now the first of December and most people are consumed with purchasing the perfect presents, baking all the sugary goodness, and arranging family photos with Santa. December is filled with joyous celebrations, and as December 31 quickly approaches, many of us reflect on the previous year, especially small business owners. As entrepreneurs, we are evaluating on most hard-won successes and perhaps, constructively learning from our missteps.
As we reflect, what would happen if you completed a simple, productive exercise to guide you into the New Year? December is for all things holly and jolly, but it’s also “National Write a Business Plan Month.” Now is the perfect time to carve out a few minutes and pen your mission statement, purpose, marketing objectives and strategic goals. Entrepeneur.com and the Small Business Administration have wonderful resources to help guide you through the process.
As your bookkeeping firm, we also want to assist you in fulfilling your business’s potential. Here are a few services we offer to each of our clients as we enter 2020:
Annual Review Call: Once your books are complete for 2019 (usually around mid-January), our firm can schedule a conference call or in-person meeting to review your financial reports. During this meeting, we can analyze which areas of your business had the most growth, which projects were the most profitable, and what areas need more attention. It’s also a time for you to share your goals with your bookkeeper and together, we can create a plan to implement any new tools or programs.
Client/Project Profitability: As part of our bookkeeping packages, clients can choose to track in detail client and/or project profitability. Organization is key to make this tool useful and accurate, but if used properly, we can provide a Profit & Loss Statement for each client or project which reflects all revenue generated along with every expense, down to the smallest purchases such as staging flowers, client gifts, shipping costs, etc. How can the Profit & Loss Statement by Client report help you plan? It will provide insight into how you budget your time; did you provide enough markup on products; did you invoice for shipping; did the budget accurately reflect the overall work/material needed for the project? The report can be a powerful tool and we’ll help you track every item with great organization!
Budgets: They may not be glamorous, but budgets have a true purpose in strategic planning. Our staff can review previous years revenue and expenses and produce a 2020 budget for you, which can be entered into QuickBooks Online. With your monthly reports, we can include a Budget v. Actuals report that will illustrate how you are managing your money. One of our favorite quotes regarding budgets was stated perfectly by business guru, John Maxwell, “A budget is telling your money where to go instead of wondering where it went”.
December is truly a magical time of year. Where kids’ imaginations run wild with images of sugarplums, winter wonderlands and the latest video games! But when you, as an entrepreneur, use your wild imagination, what images appear? Wide ideas and grand dreams need to start somewhere! Crafting your business plan is the first small step. As you plan for this holiday season, make sure you plan for success in the New Year and let Business by the Book be a part of that success!
This post is meant for informational and educational purposes. It is not tax, legal, or financial advice. As always, Business by the Book recommends that you consult with your CPA regarding any tax questions.
