Do You Have a Financial Statement Strategy?

Optics are HUGE in every business. How you present yourself and your work gives you a reputation. As we all know, our reputation precedes us, and we take good care not to tarnish it. Why should you treat your financials and different?

Do you need financing from a bank? What about if you’re looking for investors? We work with contractors, retailers, restaurants,professional service organizations, and any other business under the sun. The same set of financials does not make sense for each organization. Don’t sell your business short.

Take for example the contractor. Cash is coming in nicely in the summer, but in the winter months, things get rough. Instead of just having a calendar year ending 12/31 where you’ve blown through half of your summer cash to keep up your overhead, how about we make your financials end at 9/30? With tons of cash in the bank at that time of year, a successful contractor looks really good on 9/30, but not so great on 12/31. So why not put your best foot forward and have your financials end there?

What about the retailer? Christmas season and the holidays are a great time, so a calendar year end makes a lot of sense. Keep it simple.

How about restaurants? This is a complicated one. Where is the restaurant located? If it’s a southern vacation spot, there’s seasonality in revenues. However, if it’s a staple in your average town, revenues may be stable throughout the year. Each of these situations call for a different Financial Statement Strategy, and both businesses are in the same industry.

Finally, what makes sense for a professional service organization? Well, if you’re in accounting, tax time is great for us so 6/30 is an obvious choice. If we wanted to end on 12/31, we could, but just like everyone else, we have overhead too, and we don’t look nearly as good on 12/31 as we do on 6/30.

There’s several methods to consider when diving into this topic. The overarching theory is this: accurately matching revenues with expenses. Whether you’re starting today or have been in business for years, we can help you put your best foot forward and present your business the way it should be.