Does just looking at that word make you cringe?
Let’s take that cringe out of reviewing reports and replace it with the power of knowledge.
I have worked with numbers for years. They don’t lie and they always tell a story.
The real magic to numbers is trusting they are true, listening to the story they are telling and utilizing their story to create the vision you have for your business.
Where do you start? Keep it simple. Each month review your Profit & Loss Statement. Look at what your income and expenses are.
What are you looking for, a trend or a question? Do the numbers make sense or do they bring questions to your mind? Questions are the first step to analyzing your numbers. You will find yourself running drilled down income or expense reports to answer your questions.
Start to compare. Run a comparison report with last year’s same period or compare this month to last month. You will start to see a picture of your business. You will know why expenses are up this month or why last year’s sales in July were high because you closed on your biggest account that month but this year they are buying less.
If the trend or story begins to be one you do not like you can make a change. The sooner you recognize a down trend the sooner you can make it an upward trend.
Then there are the times where you analyze the sale of a product or service and realize it was not what you started out to sell or do but that your profit margin on it is fantastic…..decision time……less work, better profits or more work, lower profits.
Reports are nothing to be afraid of…..not analyzing reports is. Do you know the story your reports are telling?