You Should Have Your Numbers On The First Day Of The Month

You Should Have Your Numbers On The First Day Of The Month

If you’re doing all the cool things like continuous billing, accruing and prepaying expenses, twice monthly salaries, something like ReceiptBank for automated accounts payable and employee expenses, etc… you should have numbers for the month on the next working day. Not two weeks later.

The days of “waiting for the invoices to come in” are over. You get an invoice the moment you buy something these days – or use a purchase order. Xero’s purchase orders are fantastic.

Some things like phone bills might vary a few percent but it’s ok to estimate them. Have a separate quarterly “detailed expense review” process for expense control. or do it monthly if needed.

The main thing you want to do is look at the big issues like margins and forecasts.

Too much can change in two weeks, the next month is already half over. Life just moves so fast. And it’s the same amount of work if you do it early or late.

I think this one change can make a huge difference to the fortunes of a business.

 

Photo by Taylor Grote on Unsplash