Could you pull together a current financial statement within 2 hours of getting to your office Mon morning?  And, more importantly, do you know how to decipher what it says?

And, then do you know how to turn those numbers into a real business financial scorecard of where you are now and a predictor of the future?

If you don’t, you may be like thousands (probably hundreds of thousands) of other small business owners who don’t have a clue what the future holds or whether they really have enough money to pay the bills next month.  

In 3 weeks I’m going to introduce a hot-off-the-press Business Financial Scorecard to my Private Clients. The Financial Scorecard will show the five key components to a financially healthy business:

(1)  Income.  If you don’t have income for your business, your business is not going to last very long!

We track three trends:  Gross Income, Gross Profit and Net Income.

(2)  Current Cashflow:  Do you have enough money right now and enough money within 30 days to cover your expenses?  These ratios are called a quick ratio and current ratio.

(3) Projected Cashflow:  How well are you handling the assets of your business?  Do you have stagnation?  Are the assets converting to cash quickly? And are you paying your bills on time?  (A sure fire indicator of trouble ahead)  Track A/R (Accounts Receivable) Days, Inventory Days and A/P (Accounts Payable) Days. 

(4)  Business Valuation:  How much is your business worth today, realistically?  How much WAS it worth?  How much WILL IT BE worth?  Map out your trend & focus on the key indicators that make your wealth increase as your business becomes more valuable.

(5)  Key Leading Indicators:  What are the three most significant indicators for your business that tell you what your business prospects are for the next 180 days?  In my business, I have three conversion ratios that I watch regularly.  What indicators predict how your business is doing?

Keep watch on this blog and my Twitter account http://www.Twitter.com/DianeKennedyCPA for news on the new ONE PAGE Business Financial Scorecard and how you can get a free copy!  (I have to get Eva, our graphic designer extraordinaire to draw it up first.)

Imagine - having all the information you need for your business on just one page.  And best of all, it’s not just numbers!  You’ll see at a glance what you need to do to make your business explode with growth and possibilities, and best of all, you’re going to keep more of what you make.