It is particularly important for small businesses to get into the habit of facilitating accurate, timely and meaningful financial reports. These are important for the following reasons:
1. Allows you to analyze and assess your company’s performance – both past and current.
2. Helps in the understanding, monitoring and controlling of costs.
3. This fulfills your bank and other third party requirements, including preparation for taxes.
4. Sets your financial targets for next quarter and help with projections for the following next year.
5. Monthly financial reporting should include
6. Balance Sheet
7. Income Statement
8. Statement of Cash Flows
9. Alerts you as to the need to implement factoring services to help pay bills.
10. Provides you the small business owner with peace of mind.
Many small business owners stress because their invoices have not been paid on time. Some have 30 day invoices that are running at 60 and even 90 days out, thanks to the recession. But the one tactic mentioned above that can alleviate stress if the funds just aren’t there this month to pay your bills, is invoice factoring. Also known as accounts receivable factoring, small businesses everywhere globally are finding out that it is one of finances best kept secret.
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Source: Interface Financial Group
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