Article written by Charli and published at Hubstaff, leaders in employee communication software. We all know that communication is a key factor in a business’s success — whether they implement a SIP solution (Read More about this here) or you improve communication when it comes to accounting — so today we’re going to focus on the financial side of this issue.
When you’re growing a business, there’s so much to think about. Winning contracts, hiring staff, exceeding customer expectations, buying equipment and services such as Easy Pay Direct (Click here to check out EPD) to sort out your payment gateway woes, and advertising your services. So, it’s little surprise that so many small businesses don’t keep an accurate balance sheet that employees can use to communicate their concerns, profits, and questions on.
Unfortunately, failure to keep on top of your finances can be fatal. Looking at the stats from Fits Small Business below, one jumps out: 29% of small businesses fail because they ran out of capital. Furthermore, only 40% of small businesses are profitable, while 30% break even and 30% are losing money.
How can you avoid running out of capital, and keep your business profitable?
By keeping an eye on your small business balance sheet – and making sure the format you’re using is designed to give you the most critical information.
In this article, we’ll look at balance sheets for small businesses, why you need to keep them, and some tips to get you started. We’ve also created a free balance sheet template to download so you can start implementing what you’ve learned right away.