“What sort of information
should I be requesting
from my accountant?”
Have your accountant run these key
reports every month: cash flow, accounts
payable, balance sheet and a profit and
loss statement. This financial information
is your best business management
tool, and understanding how to read
and interpret it is vital to your success.
Start looking at the numbers and ask
for clarification if you don’t understand
something.
To get reports that are current and
meaningful, you must have a system
that inputs your financial and sales
information into an accounting database
or POS system. Ideally, your software
will be compatible with your accountant’s;
otherwise you’ll end up paying for the
time it takes to input your data into
their system.
Investing in a computerized accounting
package with POS capabilities is very
worthwhile, regardless of your sales or
size. I suggest viewing the following
reports on a monthly basis if you have
this type of system: sales by category,
operating costs, purchases, payroll and
sales data on a daily, weekly and monthly
basis.
Analyze your financial information and
whether or not keeping your store open
is a good investment of both your time
and money.
The Reports in Detail
CASH FLOW:
Details the money coming in and going it.
It can be your first indication that there’s
a problem.
ACCOUNTS PAYABLE:
Lists what you owe and when the money
has to be paid.
BALANCE SHEET:
A snapshot of your business’s financial
condition.
PROFIT AND LOSS STATEMENT:
A simple calculation of your revenues
and expenses.
Barbara Crowhurst is a coach,
consultant and trainer. During
the past 15 years she has worked
with thousands of store owners
across North America. Specializing
in retail makeovers, which can be
conducted on-site or over the phone,
Barbara excels at revamping a business by
examining everything – from financials, sales
and marketing to store layout, staff, sales training
and merchandise mix. Then she proposes solutions
and improvements for long-term success. For more
information about Barbara or her services, visit
www.barbaracrowhurst.com or call (905) 686-8898.
