The new workbook is posted under the members tab. Here is a synopsis.
Your Profit & Loss tells you how much money you brought in, how much you paid for expenses and how much was left.
Your Balance Sheet tells you what you have or own in the business and how you paid for it. Assets equals liabilities and equity.
Aged Receivable tells you the money owed to you for work done or sales made, by whom and for how long.
Each of your statements tells you specific information about your business. The real value is in looking at your statements over time.
One of my favourite statements is the Profit & Loss by month. You can see your year laid out. You can see your income trends by season, you can see when you spend on advertising or repairs or staff. You can see if anything has been missed – 11 phone payments instead of 12.
Look at statements from 2 different time periods: this past quarter and the one before or the same quarter for the previous year.
As you do, look to see how things have changed. Is your revenue trending up or down?
How about your expenses?
Do you owe more or less money?
How much value do you have in Inventory and in Equipment?
How does your bank balance look?
If you have any questions I am happy to answer them here in the comment section or send me an email.
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