I talk a lot about how to grow your small business. My passion is watching a small businesses grow and become more successful. The success or failure of a business always comes back to the leader. No matter what, the leader of the business is responsible for the end result. Every leader has a different management technique that I feel is based upon education and experience. For example, a person with an accounting background may not run a restaurant in the same manner as someone that primarily has a background in restaurant management. However, completely ignoring the financial aspect of a business is insane, yet I see it happen every day. I think many business managers and owners avoid the financial aspect of a business because it is intimidating to them. They find accounting and financial statements confusing and therefore they try and avoid them. I'm going to show you a few different ways that you can make sense of your bookkeeping and use it as a tool to help run your business.
Cash Flow Tool
Managing cash flow is a concern for just about every small business. As a small business owner you need to stop relying on your online bank balance and start using QuickBooks as a cash flow tool. Simple steps like entering daily sales, posting automatic bill payments and printing checks from QuickBooks will all lead to better cash flow management for your business. You should also reconcile your QuickBooks checking account to your online banking daily balance. If you sort your QuickBooks checking account by cleared status you can see two crucial things that allow you to manage cash flow. You will see your most recently reconciled balance, which should match to the most recent daily ending balance of your online banking checking account. Additionally you should see your "real' bank balance. That would be your QuickBooks checking account balance that takes into consideration all deposits that have not cleared you bank account, but also all payments that have not cleared the bank. By using QuickBooks in this manner you know your actual bank balance at all times and you will have complete control of your cash flow.