As one year closes another begins. And, many of us choose to keep doing the same thing; Over and Over. For some catching the numbers up to close the year becomes the unwanted necessity to get taxes filed and the like. But to really good operators, numbers are the life line of the business.
But numbers can be deceiving. In the custom integration business, numbers can be wildly different from company to company. Some prefer the cash method, some believe in accrual and there are 50 shades in between.
To get accurate day to day guidance, there is really only one way to count in the business. Keep cash and inventory as balance sheet items and use revenue recognition that is centered around goods, parts and labor being delivered. Do these basics and you get revenues and costs aligned and a better predictor of future business.
We have developed an entire set of metrics around these fundamentals and it takes getting your Quick Books set up properly and a commitment to regular posting of internal activity. And, most importantly, keeping ahead of requests for payments from your clients to operate more easily on their cash.
Sounds simple. It is. And it can be the most rewarding thing you have done for your business. Check into getting QUICK BOOKS set-up for the coming year. See our QB Pro Experts for details. It will be the best money you spent on the business ever.