We’re midway through 2013 and perhaps it’s time for a mid year financial review. Although the economy shows signs of recovery, many businesses are focusing on Obamacare and how it will affect them in 2014. Growth can also mean more tasks and work than a department or team can handle. Perhaps some of those tasks can be identified and outsourced.
Take some time to review your financials so there are no surprises at tax time next year. Making adjustments in pricing, personnel, accounts receivable and accounts payable processing can have a big impact on the balance sheet.
As new products and services are being developed for the latter half of 2013, it’s important to have a thorough understanding of the profitability for existing lines of business. Perhaps you’re a retail store and carry inventory. As sales and promotions come from vendors, it is important to have a clear picture of how quickly products are turning over in inventory.
Accounts payable and accounts receivable should also be monitored closely to ensure clients are paying on a timely basis and adjust terms if needed for slow paying clients. Because we review financials with our clients on a monthly basis, they have a solid understanding of their monthly cash flow as well as profit and loss. If you’re shooting in the dark and don’t know where you stand midyear, utilizing a bookkeeping service can help keep your business moving forward.