Greetings!
Welcome to the inaugural newsletter of Profit Point Consulting! Each newsletter will be centered around a theme; this month's is starting with the basics-- understanding your financial statements. Please feel free to e-mail me with your comments any topics you would like to see in future newsletters. |
| Is My Accountant Speaking English? |
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 Have you ever been in the situation where your accountant or bookkeeper is talking to you and you have no idea what they are saying? You are not alone. Most business owners I speak with don't understand all of the accounting jargon and many accountants or bookkeepers don't find it easy to communicate in layman's terms. Frustrated, business owners abdicate responsibility for their financials and rely on their accountant or bookkeeper to tell them if their business is doing well. By doing so, they are selling themselves short.
The best business people I have ever known, regardless of their specialty, have had a good handle on the numbers and how their decisions impact their financial statements. At a minimum, you need to understand what financial statements are, how to use them, and how they interact with each other. Once you "get" this, you can do so much with the information contained in them, and make good, solid decisions based on the numbers. This will translate into less time spent chasing after the wrong customers, selling unprofitable products or services, or worrying about cash flow. Read more.
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| Numbers in the News... |
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With all the turmoil in the markets and news of a looming recession, it is good to know what the impact of these numbers might be on your business.
5% National Unemployment Rate
-2.9% December's Decline in Consumer Spending
Both factors indicate weakening in the economy. Fewer jobs and less spending will result in less demand for products and services. If you are not in the consumer market, your clients may be, so you inevitably will feel the pinch. Are you ready for a downturn in the market? Look at your cost structure and set up some contingency plans for the turbulent times ahead. Talk with your financial professional or give us a call, we can help. |
