Does your billing/front office system equal the accounts each month? If not you might have a black hole. Regardless, you won’t know how your business is performing.
Do your salaries expenses go up and down like bitcoin? Especially if you have fortnightly salaries. You need to adjust for the number of days accrued (not paid yet) at the end of each month if you want meaningful accounts.
Do you know how many hours everyone billed as a percentage of their hours worked last week?
Do you know your gross profit for each client? By income stream? For each team?
Do you do, or review, a weekly cash flow forecast every Monday morning?
Do you do, or review, a sales pipeline report every Monday as well?
Do you know your forecast sales and profit for next month? 3 months out? At the end of the year?
I know I bang on about this stuff but the older I get the more I understand that they are the basic entrance criteria to the exclusive club of fast-growing, but sustainable, businesses. None of the things on this list will make you the money but it seems stupid to try to make money without these basics in place.
Photo by Felipe P. Lima Rizo on Unsplash