We are now well into the first quarter of the year, and while it may seem like 2019 was just yesterday, it’s time to start preparing for Q2 in 2020. As a business owner, it’s easy to let time pass you by: you have meetings after meetings, endless calls, paperwork to sort through, operational tasks to handle…the list goes on. However, without planning each quarter with objectives that work towards your annual profitability goals, another year will pass by before you know it and none of your goals will be reached. Especially when it comes to finances, you may even find yourself in hot water if you don’t plan ahead.
To ensure you enter Q2 on the right foot to business profitability, we’ve compiled a list of finance and accounting tips to help you succeed:
Choose three focus areas for Q2
What are you trying to achieve this quarter that will work towards your end goal? Whether this is developing new products, increasing sales, or creating efficiencies in your processes, you’ll need to highlight your main focus areas so that you can create KPIs attached to them and action items.
Look at the past
Make a list of your “wins” and “losses” over the last quarter, and even the last year. Review your goals and financial documents from last year to see what aligns and what fell out of step. Of course, don’t forget to ask your financial advisory team how your company is performing. At the end of the day, it’s the bottom line that will affect business profitability. Allow the information from the past to teach you how to move into the future.
Revisit your business plan
It’s important to keep your initial business plan top of mind. As a business owner, you know that unexpected things come up all the time and you have to be flexible to accommodate these changes, but you do not want to lose sight of what your business’ purpose is.
Create a quarterly financial report
Start gathering materials to summarize the performance of your business over a three-month period. As it’s now February, don’t wait until the last moment to start looking at your finances. Your financial report should include income statement, balance sheet, and cash flow statement. This will give you a good jumping point for the next quarter as it illustrates how your company is performing so far. That way, you can see what has been done well and what needs recalculation or changing.
Chances are, you may be too busy to take care of all of this. You need a one-stop accounting shop to provide you the financial advice you need. From budgeting to cash flow planning, we can help you start the next quarter off right. Our team of accountants and tax specialists can also help you tax plan and provide advice on any tax regulations you should know about. Schedule an appointment or give us a call at 647-476-2145 to get started.