[vc_row type=”in_container” full_screen_row_position=”middle” scene_position=”center” text_color=”dark” text_align=”left” overlay_strength=”0.3″][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ width=”1/1″ tablet_text_alignment=”default” phone_text_alignment=”default”][vc_column_text]Every successful business needs a good accounting system. Knowing what you spent, what you earned and what the difference is, is critical to having a successful business. Additionally the government is very interested in knowing how much you’ve earned so they can ‘participate’ in your success.
However, having an accounting system that only looks backwards is the same as having a self-driving car with all the sensors pointing to the rear. While a good accounting system may keep you out of trouble with the federal government, the true value of accounting data is not realized until it is analyzed and projected into the future to guide business decisions. Strategic Financial Management is the process that uses the accounting data to shine a light down the road. It answers the key question you should ask before every big decision: “Can I afford to do this?”
It’s important to have an analyst who is emotionally neutral about the numbers. Entrepreneurs and owners need to be passionate about their business, but too often this blinds them to short-term problems, impulsive buying decisions, and cash crunches. If you’re going to be the captain of the Enterprise make sure your first mate acts a lot like Spock and not like your mom. Being supportive and agreeable is one thing, getting captured by the Borg is a game changer.
Having someone who can calculate the internal rate of return and payback period of a potential purchase is often the difference between a pretty good business decision and an excellent one. The internet has made that kind of expertise available on a part time basis, so even small companies can afford to get the strategic financial management help they need, when they need it.
All of the business world is speeding up, looking at the books once a year is not going to keep the doors open for long in the current environment.
Learning how to use your accounting data to steer your business with foresight is a necessary skill set now and will be more important than ever going forward.[/vc_column_text][/vc_column][/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” scene_position=”center” text_color=”dark” text_align=”left” overlay_strength=”0.3″][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ width=”1/1″ tablet_text_alignment=”default” phone_text_alignment=”default”][nectar_btn size=”large” button_style=”regular” button_color_2=”Accent-Color” color_override=”#007581″ icon_family=”none” url=”mailto:team@thehabitsofprofit.com” text=”Contact The Habits of Profitability™ Team” margin_top=”20″][/vc_column][/vc_row]