Owning and operating your own business is no easy feat.  Not only does it take a lot of effort and sleepless nights to get it off the ground, there are still scary moments even after launch.  Are you feeling uncertain about the future of your business?  Here are a few ways to address it from a financial perspective.

Understand Your Cashflow Forecast

Are you spending more money than you really need to?  Are you saving enough or are you tying up more cash than necessary?  It’s crucial that you understand how your business brings in cash, spends cash and the processes you have in place to track all of this.  You might be surprised to learn that you could save more on your fixed costs or that you could reinvest a certain amount back into the business.

When you’re faced with uncertainty, understanding how you’re spending your money and how much of it you have, is essential and a well-built cashflow statement will be able to show you all of this.

Follow Reporting Best Practices

Following up from that last point, you can’t afford to get lazy and stop following reporting best practices.  These are there for a reason and you want to ensure that you’re dotting all of your I’s and crossing every T.  If you’re already uncertain about the upcoming quarter or a decision you’re facing, it doesn’t help if your reports are unclear too.  Your reports should tell a clear story, be up to date and provide you with all of the facts so you can make better informed decisions.

Develop a Rolling Forecast

Budgeting is crucial in a business but it is static and when you get to the end of the period, like a year, you have to start over again with more uncertainty.  A rolling forecast, on the other hand, will always show you what to expect for the duration of the period.  When one month ends, another month is added to the end.  It’s always the same length and provides a clearer picture of what to expect.

Uncertainty in business is never a good thing but with the right financial tools and practices, you can feel more secure and make smarter choices.  For more information, contact us.