3 Reasons You Should Review Your Business’ Financials

Timely accounting review is a vital, yet often forgotten, tool of every business owner. If you don’t regularly look over your financial statements, you’re missing out on growth opportunities and setting yourself up for failure. Here are 3 reasons you should review your business’ financials quarterly:  

Reason # 1: Locate Troubled Areas

The only marker of business success is definitely not always financial profitability. However, if you aren’t checking income, expenses, cash flow, and liabilities at least quarterly, you are unable to notice where you could be losing money. Perhaps, a current internal process is not an effective way to operate, but you can’t see the full picture because you neglect your accounting reports. Financial results offer key indicators so you can adjust procedures before they become damaging to your business as a whole.

Reason # 2: Adjust for Regulation Changes

Industry standards and best practices change all the time. Often faster than any business owner can truly keep up with. Taking the time to meet with your accountant at least quarterly is vital. You can review transactions, make necessary coding adjustments, identify profitability, and examine overall reporting results. All these steps and preparation means you will be prepared for your CPA and tax time.

Reason # 3: Identify Profitability Trends

Do you know your net income for last quarter? Do you know your highest earning service or product for last month? You need to know your actual profit/net income from the big picture perspective and by service/product. If you don’t know what’s making you the most profit, you will be unable to better market those areas because you don’t even know your strong points. Which means missed opportunities, and less money. 

How We Can Help

LEM Business Solutions has a personalized and custom strategy to help all their client’s stay on track for every accounting and financial deadline. There are far more than just 3 reasons you should review your business’ financials! They offer not just annual review, but quarterly reviews to ensure everything is recorded appropriately to industry and accounting best practices. To learn more about their services, click here. To schedule a free consultation, click here or give them a call 314-582-6811.