With spring here, now is a great time to take a good look at your business finances and make sure that everything is in order as it should be.
Far too many businesses don’t periodically clean up their finances and in time, this could get them into major trouble. By taking the time now to ensure you are looking good, you can head into the summer months feeling great about your business game plan.
Let’s look at the main steps to take to spring clean your finances.
Cut Expenses That Aren’t Providing a Pay-Off
The very first thing that you should do is start to evaluate all the monthly expenses you have and consider eliminating any of those that are just no longer delivering. The fact is that many people fall into the trap of subscribing to monthly services and in time, they aren’t even using these any more, but they overlook the fact the expense is still being deducted from their account.
Really take a look at your expenses and decide if they are being used and offering you any sort of pay off.
If they aren’t, consider cutting them out.
Eliminate Activities That Aren’t Providing Value
Next, also take a look at your activities. As the saying goes, time is money and if you aren’t spending your time wisely, you may need to re-evaluate things.
Take a hard look at all the activities that you do throughout the week, whether they are costing you money (such as marketing activities) or whether they are free to do (such as customer service).
Think about which are producing the greatest pay-offs for your business and then focus on investing more time and possibly funding into these activities.
Start eliminating those that just don’t have a high payoff to get you to where you want to be.
If you do this exercise properly, you will be able to feel confident that you are using your time wisely.
We all only have 24 hours a day, but some of us spend these 24 hours far more wisely than others.
Get Your Books In Order
Finally, take some time to make sure that your bookkeeping is in order as well. This is a tedious task that far too many businesses keep putting off longer and longer and before they know it, they’re in a real mess come tax time.
Go through your book keeping and ensure that all records are in order as they should be. Then from this point forward, stay on top of things better so that you don’t let it get out of control again.
So there you have the steps to take to spring clean your business finances. These don’t take much time to do, but they can definitely impact your bottom line moving forward.