Do and don't

​

• Do detailed explanations make your eyes glaze over?

 

• Do you hate digging into the details of your financial statements?

 

• Do you understand your financial statements?

 

• Do you cringe when you think about a bank appointment?

 

• Do you let the bookkeeper sign checks?

 
If you answered yes to one or some or most of those questions your business may be heading for financial trouble.
 
Many business owners, if they are really honest with themselves would answer yes to most or all of those questions.
 
Why?  Because many business owners see themselves as visionaries, smarter than everyone else or simply bulletproof.  Many believe they have hired people to do all the things they don’t want to do (like the things in the questions).
 
You have to have the details.  But, you are allowed to ask that they be presented concisely and understandably.
 
Develop a brief executive summary of your financial statements.  One or two items should be reviewed daily, most can be reviewed weekly.  Question anything that doesn’t seem right to you.  Demand answers within 24 hours.
 
You are either asking the bank to loan you money or continue to loan you money.  They are entitled to have factual honest answers and explanations…they are taking a chance on you no matter how long you’ve been with them.  You should have those answers immediately available.
 
 
I don’t advocate delegating check signing in smaller businesses.  I’ve seen dozens of cases where that practice led to theft of one kind or another and the loss of the business due to a lack of cash.
 
If you stay on top of the details, yes even the ones you don’t want to bother with you’ll be able to answer the tough questions when they arise.  You’ll be better able to anticipate needs and changes.  You’ll also be better able to blaze a trail for more profitable operations and growth.  And, you’ll be better able to avoid financial trouble.