Demanding More of your Bookkeeper or Accounting Staff

If you are a business owner, you most likely have a bookkeeper or accounting department to take care of your record-keeping. They may be doing a stellar job at maintaining accounts receivable, payable, and the daily banking operations, but ask yourself one question: Do they provide you with meaningful reports on a consistent and regular schedule? If not, you are missing out on one of the more valuable aspects of having accounting personnel on staff.

While the daily operations are certainly important, being able to evaluate and compare your company's performance on a regular basis can provide information that you would have otherwise overlooked. Have them run a Balance Sheet, Profit & Loss Statement, and Cash Flow Report monthly (or at the very least quarterly). These will give you a comprehensive snapshot of your company's current health. By requesting "comparative" versions of the Balance Sheet and Profit & Loss, you can spot trends or anomalies as compared with previous accounting periods. You may also ask for the Profit & Loss by month or quarter to get additional periodic detail.  By running these reports periodically, it can also help your accounting staff spot potential errors that might have normally gone unnoticed.These reports can be extremely helpful in setting budgets and forecasting future activity. 

As owner or CEO, take action to request these reports regularly. Take advantage of what resources you have available to analyze your company's financial health. Forge a clear and well-informed path to greater success.