Financial statements and documents are often extensive, complex, and intimidating to understand. For these reasons, many small business owners aren’t conducting proper analyses of their financial statements – or are just ignoring them entirely. This article on CNN Money discusses the effects of neglected financial statements and gives advice on how business owners can increase attentiveness and understanding.
The monthly statements your business receives are worth your time and attention. Business owners often find additional charges and fees upon sifting through these documents that could have been easily avoided. Even if these additional charges are necessary, you should be aware of them and be sure that they are free of error! For example, the majority of small businesses conduct credit and debit transactions via a third party merchant who charges a small portion of each charge processed through their system. Be knowledgeable of the transaction charge and review the monthly statement they provide your company.
Financial statements are often excessive in length and detail – and you probably get them from multiple sources! The statements all look different and follow various structures, so conducting analysis in not a “one size fits all approach”. Credit card companies may use paper statements to inform you of new fees and policies which you would not be aware of otherwise. Inflated fees are easily concealed and, unfortunately, some companies attempt to be ambiguous with their statements that are purposefully confusing.
A professional bookkeeping service enables your business to be knowledgeable and aware of cash flow without the sacrifice of time. Tailor your bookkeeping service to fit your needs! Consider paying for a few additional hours each month for financial statement analysis and stay up to date with your credit card transactions and fees. Behm Bookkeeping can help your business maintain organization and control of your financial statements. Give us a call today and let’s take care of your finances together! 480.323.9189