By this time, you should have your May financial statements. If you don’t, you’ve got a hole in your system.
Bookkeeping can be a vital key for being a business owner. Your financial statements should never be more than 30 days late and they should give you, at a minimum, the following information:
- Where does your cash flow come from?
- Where is your cash flow going?
- What is your gross profit? (Sales minus cost of sales and minus cost of goods sold)
- What percentage of gross sales go to G & A costs?
- How do your expenses compare to your average expenses?
vHow do your expenses compare to your budget?
And, if you have a CFO or virtual CFO helping you, you can start looking at deciphering the numbers you see in your financial statement and determining what activity you need to do more of, and which ones you need to do less of.