| Is keeping an accurate financial record of your business taking a back seat? Unless you just love numbers, tackling your sign business' books is not as enjoyable as selling or manufacturing your product or service. Nonetheless, if you intend to run a successful sign shop, the need for timely and error-free financial information is a necessity.
Implementing a better or overhauling your existing record keeping system may be long overdue if you can't easily answer the following questions:
1. Am I really making money or do I just think I am? Do I know how much my sales have increased over the previous year? Are my expenses increasing faster than my sales? Which expenditures seem too high or "out of wack"? The Point: Without a clear representation, it's difficult to see how your sign business is doing.
2. How many custom widgets did I sell this month? Do I know how much material to order and stock to make next month's batch? (Or, be it banner material, 2 mil vinyl, etc.) If I hire another person to work in the shop or another to sell signage, will it really pay off? The Point: Without essential information, it's hard to make informed decisions or realize the impact of a course of action.
3. Do I have a budget for my expenditures? Can I forecast how much cash I'm going to need just to break even? If needed, could I convince my banker how my planning has resulted in stability and growth? The Point: Without solid facts, you simply cannot plan for a meaningful future.
4. Do I pay my bills on time? Am I ready to file my income tax return by the due date? Are all sales, payroll or other taxes collected and deposited when they need to be? Do I know for sure if I haven't underpaid/overpaid my taxes or double-paid an invoice? The Point: Without sound bookkeeping practices, compliance to mandatory laws, and payment of outstanding debts, success will be next to impossible.
To operate a prosperous sign business, take the initiative to implement a better bookkeeping process or overhaul your present accounting system. The need for timely and error-free financial information is vital for your sign business' stability and growth. If you don't have the time, experience or love of numbers to accomplish the task, then pay someone who does. The expense of hiring qualified help will more than compensate for itself when budgets are set, expenses are pared and bills are paid in a timely manner, not to mention the benefits reaped from increased collections!
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