Happy New Year! Have you made your resolutions yet for 2011? It’s a new year and a clean slate, so now may be the perfect time for a financial new year’s resolution for your business. Here are some ideas about what your might be able to benefit from in the coming 12 months:
One report at the end of year gives you a benchmark figure to compare years, but not much else. For information you can use for forecasting and budgeting, it helps to have quarterly or even monthly reports. This can help you stick more closely to your budget or adjust things that aren’t working.
Once you get those reports, it’s time to regularly use them. Instead of looking at “nice to know” information, consider what kinds of data would provide you with valuable information that can help your business run more efficiently; then find a way to get that from your financial reports.
Have an Emergency Plan
Lots of things can go wrong in the course of a year. What happens if sales are down and your incoming cash doesn’t cover your expenses? What if something happens to your server or your office? If at the beginning of each year you take the time to consider these scenarios (and create a contingency plan and reserve), you will be much better off should the unexpected happen.
What are your business resolutions for the new year?
Toffer Grant is PEX's Founder and CEO. He founded PEX in 2006 as a prepaid card solution for small businesses. His background in the prepaid industry began at Clarity Payment Solutions, where he initiated 65 prepaid card programs in consumer, corporate, and emerging verticals of the prepaid card industry.