BTACT – Woodland Hills Quickbooks Enterprise, Pro Consulting & Training

So you are a loving, caring individual who loves their body.  Every year, you get a full phyiscal and you are thrilled to find out your ticker (heart) is fine and everything else attached to it.

So what do you do for your business?  How is the “blood pressure” of your business today? Is there a chance for a premature heart attack in these times?

These are cautious times that we are in.  Any “physical” for your business should be from a perspective of you think your business had a mild stroke last month and maybe a full physical is in order.  This is not a time to wait to see if your business gets another stroke.

This may come across as some heavy thinking, but let me go on…..so you have your business on an “HMO” so you haven’t seen a doctor for a long while, let alone a specialist who may be able to diagnose what may be ailing your business.

Do you want your business to die, or do you want to do something to get it back on it’s feet?  Take a look at your current care providers.  They may be fine, even if you never asked them for this kind of help before.  Or you may have to go “outside the network”, which is  a health care term for you need someone more than who you have.

“What and/or who do I need?” is the typical business owner’s response.

Let me give you a check list for a starter.  After this is done, you may need a specialist to “read the x-ray or the MRI”. Try using your current health care providers; otherwise take a look for specialist to augment your team.

Checklist:

1. Get your accounting records up-to-date, including monthly bank reconciliations?
2. Review your Accounts Receivable to be sure it is accurate (like all credits are applied and customers know their balances).
3. Also look at average days outstanding for customers.
4. Review your Accounts Payable to be sure it is accurate (like no double booking of vendor bills, or returns that are still hanging).
5. Compare a 12 month P&L last year to this year, with columns for change in dollars and percent.
6. Compare a 12 month Sales by Customer, last year to this year, with columns for change in dollars and percent.
7. Compare a 12 month P&L by month, looking for trends.
8. Compare a 12 month Sales by Customer, looking for trends.
9. With customer reports, also see if you can classify customers, which will then give you a higher vantage point for your analysis.
10. Review payroll for last four quarters, with headcount and dollars per department.
11. If you have inventory, then take a look at the inventory turns as well as days of sales on hand per item stocked.
12. Perform ratio analysis based upon standard ratios for your industry.

When you have accumulated all of the above, or that which you can, then work with your “Business Health Care Providers” to review and analyze the information.  Develop a plan for improving the health of your business and be sure book a follow-up appointment to be sure you stay on track.

If you need help. give us a call.  We are Business Health Care Specialists.

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Tags:   Accounting Tips · Business Health12 Comments