As you’re thinking of the April Fools’ Day tricks you’re going to partake in today, take a minute to think about your “fool” status when it comes to your business finances. It’s easy to get caught up in running business operations and lose sight of the ultimate business goal – generating profit. It’s April 1st, we’re officially one-quarter of the way through the year. Do you know where your business stands?
- When was the last time you looked at your profit and loss statement?
- Last month?
- Last quarter?
- Last time you did your taxes?
- What is your average gross profit?
- How much revenue do you generate per employee?
- What is your current burn rate?
- What is your net income percentage?
- Who is your largest revenue-producing client?
- Who is your largest profit-producing client? (Not necessarily the same!)
- Do you know how profitable your latest project was?
- When was the last time you reviewed your fixed asset schedule?
- What is the true cost of your staff?
After this review, do you feel like a fool? Or, do you really understand how your business finances work and how they affect your operations?