This article was published on January 30th, 2020
Running a business in 2020 isn’t easy—especially if you’re in the LGBT community. One of the best ways to measure your business’ productivity is by studying and recording your finances. Reporting your spending, purchasing, cash inflow, and other variables is essential to company growth. These are the 6 financial reports you need to keep regularly in order to have a successful LGBT business.
- Check your bank balance on the daily. How much cash do you have? – What is your money doing and where is it going? Look for ways you can cut spending and premeditate future expenditures.
- Check your accounts receivable weekly. Show me the money! Who owes you some coins? Your A/R report should tell you when you’ll receive payments and how long it is taking for funds to land in your account based on your current payment options and length the client is taking to pay. From there, follow up is the key and reviewing the A/R statements to see if any negotiations need to occur. Create options for payments to collect your receivables quickly.
- Accounts payable need to also be checked at least weekly. Which queen do you owe what to, and when are your upcoming payments due? Are there enough funds to make those payments? Identity opportunities to save through combined payments and further options.
- Separate from your bank balance is your cash flow statement, would should be reported on and looked at monthly. – Where is your cash coming and going from and to where? Cash flow can help you determine what funds are able to be spent on the business or saved for further expansion, for instance.
- Not just for good tax keeping, your profit and loss or income statement (monthly and year-to-date) helps you understand ow much money your queer business has earned and lost within a period of time. It should identify to you how your business is performing month to month, comparing results over time or during specific ‘seasons’ so you can see trends and opportunities.
- A balance sheet shows your financial situation currently and should help you formulate a plan for the next year while identifying investment and funding opportunities you need to pursue based on your position and obligations.
Take Your Business to the Next Level
For more business and accounting advice, HomoCulture’s very own accountant is a fountain of help, knowledge, and information to aid you in your business stability and growth. Debrah Burleigh & Associates is a great firm servicing the LGBT community. Request a consultation today.