As a small business owner or manager there are many tasks must be handled on a regular basis. Failure to do so may result in a major negative impact to your profitability. A few of these things are:
- Cash Reconciliation
- At a minimum, weekly with a preference to be accomplished daily
- Understanding your cash balance is imperative to decision-making
- Credit Card Expenses
- Balancing of your monthly statement is important by ensuring that all charges are posted in the correct period
- Not mixing personal expenses with that of the business
- Inventory
- Infrequent or irregular inventories present opportunities for mismanagement
- Mismanaging the inventory will lead to an inaccurate Cost of Goods Sold
- Debt
- Knowing the businesses debt-to-equity ratio
- Is your accountant properly recording the interest portion of your debt payment?
- Leases
- Understanding the lease details, more than just the monthly cost
- Misclassifying leases can have a major impact on your financial statements
- Profits and Losses
- Cost of Sales
- Cost of Labor
Overhead Costs
