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Controlling Cash Flow – 2 numbers you need to know

The one report I see most business owners don’t look at very often, if ever, is their business is the Balance Sheet. It’s not because they’re lazy or don’t care. Mostly it’s because they don’t know what exactly the numbers mean, or how to use the information in a useful way.

Can you relate?

Your Balance Sheet is a powerful management tool if you know how to read and interpret what the numbers are telling you.  In fact – two key numbers.  Just like having the right tools when working on a project can help you produce better results, the same is true of your company’s financial reports.

What kind of results? Sufficient cash in the bank when you need and want it.  Cash reserves on hand when unexpected events occur – like a pandemic or downturn in the economy. While no one could have predicted a pandemic, the clients I work with who have cash reserves did and will continue to fair much better during this time than those who didn’t.

In this week’s video, I walk you through how to read and use your Balance Sheet as a powerful management tool.  I show you the 2 most important numbers to look at that will let you keep your finger on the pulse of your company’s financial health.  In the process, you’ll learn what targets successful contractors use in their business to manage these numbers.

By the way – these are the same 2 numbers your bank looks at to determine if they will extend you credit.

If you want to learn more about how to read and use your financial reports you can download my guide on “How to Read Financial Reports.” It explains exactly how to calculate these 2 numbers and much more!

I hope you’ve found this post to be helpful – and as always, I’d love to hear your thought.  So please leave a comment below or reach out to me on LinkedIn or Facebook.

Warmest,

Vicki

 

p.s. if you found this post valuable, will you please share it with someone you think would get value from it too?

p.p.s.  If you want to learn more about the key numbers to look at in your business to help you make a consistent profit and increase cash flow, then check out my book, The Profit Bleed.  You can still get a copy for free when you pay shipping and handling. As you check out, make sure to look at the package of resource tools I offer.

Vicki Suiter helps people see their businesses differently, then gives them the tools to do things differently.  Since beginning her business in 1990, Vicki has helped hundreds of contractors achieve the kind of success they never dreamed possible. Today, in addition to consulting, Vicki is an in-demand speaker at industry conferences nationally and internationally. Vicki’s articles and opinions have been widely shared in print and across the web. She is also the author of the book “The Profit Bleed” How managing margin can save your contracting business.

2 Comments

  1. Larry Wendt

    Great job on this video. Very clear explanation of not only what is important, but – more importantly – why. Your a master at your craft!

    Reply
    • Vicki Suiter

      Thank you for the feedback Larry and the kind words!

      Reply

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