Whether you are just about to open your new business or you’ve been in business for a while, the only way to accurately know how well you are doing and if you will have money in the bank to pay your bills is to track your numbers.

You may think: “I have a bookkeeping system, so this should do the job.” Right? WRONG!!!!

Let’s pause for a moment. You might have QuickBooks or Simply Accounting. If you make an entry into your general journal, simultaneously, the program then makes changes to your balance sheet and income statement and check register and accounts payable ledger……and all this without you understanding how each and every transaction affects your cash flow, and cash flow is the key to business.

You can get lulled into a false sense of security when you think that by having an accounting program that you have things under control.

And then to make matters worse, most business operators turn their bookkeeping duties over to a company who then gives them reports – two or three weeks too late. At this time they find out that they did not hit their projected weekly sales targets or exceeded the budget that they allocated for payroll. OUCH!

You need accurate numbers in a timely fashion. You need those numbers today; so you can react to what they are telling you.

What information do you need to know every day?

You need to know:

  • What your sales are and what your month-to-date sales are
  • How much cash was deposited into your bank account and when
  • What your labor costs are
  • How much you owe to every supplier
  • How much tax you owe to the government
  • What cheques you wrote and to whom

If you have this information, you’ll have the important decision-making information required to move forward…day in and day out.

What 4 basic reports do you need?

1.  Daily Sales Summary – This summary tracks the money coming into your business on a daily basis. It identifies what money is yours and what money is owed to the government. It also shows how clients paid – credit card, cheque, cash, or debit card.

2.  Daily Payroll Report – An extra 10 minutes here and 5 minutes there on your employee timesheets can add up to huge dollars in a year. With a daily report for labor, you will always stay in touch with the number of employee hours worked on a daily basis and it will give you your labor cost breakdown every day. You should never have to wait until the end of a pay period to know your labor costs.

3.  Cheque Register – As an owner, you need to know where the money is going. Is it for payroll? Cost of Goods Sold? Maintenance? Marketing? A cheque register itemizes all your payments and allocates them to the proper account.

4.  Accounts Payable Journal – Using this journal will allow you to know what you owe to each and every one of your suppliers. You do not need to be surprised at the end of the month as to what you have outstanding.

Every day you need accurate accounting information; so you then can make knowledgeable decisions going forward. Getting accurate accounting information from your business may not be the most glamorous part of owning a business; but, it is vital to your business’ success.

By having these financial reports at your fingertips and knowing where you stand financially in your business on a daily basis will allow you to sleep better.

We have a sample of each report in The Guide on How to Develop a Simple Management Information System.

Business has been, is, and always will be about numbers. You have to learn to love your numbers. They speak volumes to you. In this 23-page handbook, we will show you how to track your numbers using a simple but effective Management Information System that will ensure you have the accurate information when you need it – and that is every day. This information will allow you to make knowledgeable decisions based on accurate information and save you tons of money. People avoid doing numbers because they don’t understand them. We’ll make the whole process simple.

We have included 7 sample worksheets that will show you how to manage your numbers and how to use them when making your daily business decision. And in business, it is all about the numbers.