It is thrilling to know that you can take some of the mystery out of running your business by learning the numbers.
There are many business owners who don’t take their businesses as seriously as they should because the numbers frighten them. There are also some business owners who do not grow their business as they could because they do not understand the numbers. No matter what your business is, blogging, construction, medical practice or selling Mary Kay, there are numbers involved. In order to succeed and reach your full potential, you must learn the numbers associated with your business. Your business has many parts. Most business owners pay most attention to whatever it is that the business was created to do. However, the accounting numbers are an important part of the business that should not be ignored.
- cash flow – the money coming in and going out without classifying the money as a payable or expense
- expenses -anything that you have to pay in order to make money
- payables – actual cash flow out for bills such as rent, utilities, loan payments
- receivables – money that is due to your business
- depreciation – can write off the decrease in value of an item on your taxes
- bank statements – these arrive monthly, review them as they come in
- tax obligations – there are taxes due to federal, state and municipal authorities, all at different times throughout the year
- general bills – some companies give discounts if bills are paid early and penalties for late payments