No matter what goal you’re pursuing, maintaining balance in life is important. And if you’re a business owner, maintaining an accurate balance sheet is important! But sometimes it can feel like you’re doing mathematical gymnastics to get everything in place. This is when having a bookkeeping coach comes in handy.
To understand your balance sheet better, let’s define terms...
Is the end of your fiscal year on the horizon? Even though spending time at a ballgame is more fun than reviewing your bookkeeping files (unless you’re us!), it’s important to have a solid financial line-up. Don’t strike out unexpectedly due to poor planning. Let’s get ready to play ball!
Make sure that your business reviews these areas, just as sports teams do:
What are your stats?
Gross Profit Margin = (Revenue minus COGS) divided by Revenue
Where should it be if you compare to the industry average?