I’m coming to the class hoping for or expecting:Talk to me about the terms I will use everydayEntering data, classifying properly important? Tell me what’s most important to monitorTell me what my process should beWhat is required by the IRS to track and what is optional?
We should try to distinguish these in a few areas in the deck, such as Performance Metrics on slide 14 would be considered Finance
What are your numbers telling you about your biz?
Help us solve this problem.
Running your Business by the Numbers in 30 minutes a month
Running your Business bythe Numbers in 30 Mins/moA few basics and a few things you probablydidn’t know
Financial statements are just the start… Accounting vs. finance Accounting cycle Management cycle Performance analysis Financial managementSuppose it’s the end of the month. Books are closed. NOW what do you do?
Accounting vs. FinanceAccounting Finance• Looks back • Looks forward• Tax driven • Plan driven• Transactions • Models / scenarios• Internal data • Internal plus external data• Cycles – mo/qtr/yr • Management cycles Finance is about combining accounting information with business intelligence
HOW did you REALLY do?Hunt for the 3 big things each month:1. Margins shrinking?2. Revenues erratic?3. Expenses growing?
Your TurnWhat is your best guessas to your revenuegrowth % ?
Trends to Watch Unhealthy Healthy Industry Benchmark Revenue$ Revenue $ Industry Benchmark Time Time
Trends to Watch Unhealthy Healthy Revenue Revenue$ $ Time Time
Your TurnWhat is your best guessas to your Receivables ?
Trends to Watch Unhealthy Healthy Revenue Revenue$ $ Cash Cash Time Time Revenue Revenue$ $ Cash Cash Time Time
Your TurnWhat is your best guessas to your COGs % orMargin %?
Trends to Watch Unhealthy Healthy Revenue Revenue$ COGS $ COGS Overheads Overheads Time Time Revenue$ COGS Overheads Time
Trends to Watch Unhealthy Healthy Revenue Revenue$ $ Expense Expense Time Time Revenue Revenue$ $ Expense Expense Time Time Revenue$ Expense Time
What to do w/ what you know• Change a goal• Solve the problem• Change the business offerings• Change investments• Get an Advisor who knows your numbers• Most importantly…
Share with your Team! Team, we need to be lookingmore carefully at our margins…Add our subscription service to3 more customers a month and we’ll grow this 20% next year The Corelytics Financial Dashboard What’s measured can be addressed. Get them on the same page and they will help
Monthly Management Process: 30 Minute Action Plan
Result• You’ll know if you are off track• You can take advantage of opportunities• As market fluctuates, you are able to ride the wave• You won’t push the gas pedal on Sales if you’re not prepared to grow• Your team is on the same page
Long Term Goals• Sustainability• Long-term growth• Market position• Owner’s return on investment (ROI)• Equity value• Liquidity event (sell, acquire, investment)• A good night’s sleep
Free Financial Health CheckYour Company, Inc. https://healthcheck.corelytics.com/pub/sign_up.aspx