The lack of knowledge and understanding, of how money and everything that revolves around it works, is one of the greatest challenges today. Whether you own a business or not, it is important to realize how financial decisions affect you or the company’s financial success.
Budgets help ensure that financial limits are not exceeded. Living within your means will help prevent the need for overspending and unnecessary borrowing. For individuals, a budget can be developed from past spending habits. This information can be accumulated from bank statements, credit card statements and receipts that are not recorded.
Financial statements are the most important source for financial literacy of a business. Financial statements must be timely. The importance of ratios cannot be overemphasized. They can help recognize trends that would require immediate action. Their importance in proactive steps, instead of reacting to negative trends, is crucial. Financial statements should be reviewed monthly and on real time, if possible.
With years of experience as a CPA, corporate controller, and QuickBooks ProAdvisor, I can answer any questions you have about planning and tracking budgets. Send a message.