One Ice Cream Cone, Minus the Ice Cream Please
Summer seems to be arriving here in Salt Lake City. We are expecting temperatures in the low 80’s this weekend and it’s about time! I have camping trips, backyard barbeques, and ice cream on the mind. I’ll bet you do too.
I talk to small business owners every day. I admire their talents and adventurous spirits and it is a joy to work closely with them. Most of these entrepreneurs are phenomenal at what they do and produce valuable, high-quality products and services. The fact that the entrepreneur’s business is running suggests that he or she is also at least a half-decent marketer. But most will not hesitate to admit that they are not great accountants. While by admission they are not trained accountants, they often feel that there accounting is “taken care of.” What they really mean is that there employees are getting paychecks, their vendors are being paid, and their taxes have been filed. Phew! That’s what it’s all about, right? Do we do accounting because we have to do it to keep the IRS as far away from us as possible? Most small businesses do. And it’s a shame!
Doing accounting “because the IRS says we have to” is like ordering an ice cream cone minus the ice cream! The barely edible styrofoam cone certainly serves a purpose and is necessary to keep us out of a sticky mess. But the real value in the ice cream cone is the delicious scoop of ice cream on top. The most successful business owners don’t do their accounting to prepare a tax return, much like they do not order an ice cream cone for the bland cone. We should do accounting because it provides a wealth of tasty information that will help us to make and keep more money. Good accounting will make you multiples of it’s cost!
Below are some questions that successful business owners ask and answer frequently. Whether or not you do business with us, if you will ask and answer these questions every month, your business will benefit.
How do last April’s expenses compare to this April’s expenses, and why?
What types of advertising are paying off, and which aren’t?
What is historically my most profitable month?
Which month is always terrible, and what can I do now to improve it next year?
How do my overhead costs compare to my competitors’, and how can I reduce them?
When I go to the bank for a business loan next month, are my financial ratios going to be good enough?
What could a 5% increase in price do for my bottom line?
Questions like these, my friends, are the delicious ice cream that is so often entirely ignored and wasted. The small business owner often has neither the time or accounting knowledge to answer these questions. They are flying blind! We can help.
At Universal Accounting Services, we provide our clients with peace of mind. They know that their accounting is being done accurately and timely. More importantly, we help them to understand their business accounting by meeting with them monthly to review financial information and ask questions that result in growth and increased profits. If you feel that we can help you or someone you know to maximize their profits, minimize their taxes, and optimize their cash flow, let us know! It’s what we do.