{"id":61552,"date":"2022-02-24T19:43:11","date_gmt":"2022-02-24T19:43:11","guid":{"rendered":"https:\/\/cmbookkeep.com\/?p=61552"},"modified":"2023-10-20T20:40:19","modified_gmt":"2023-10-20T20:40:19","slug":"4-management-tools","status":"publish","type":"post","link":"https:\/\/cmbookkeep.com\/4-management-tools\/","title":{"rendered":"4 Management Tools Your Bookkeeping Efforts Support"},"content":{"rendered":"
Accounting is a necessary duty all businesses must provide for, one way or another. Whether you do your own books in-house or outsource these duties, reading the information provide by the bookkeeping records will help you in your role as a manager.<\/p>\n
Here are four ways to use the information collected through your bookkeeping processes. Your company cannot survive without making a profit. You must provide for yourself through the operations of your business as well as your employees.<\/p>\n
How do you know if your efforts at this are paying off? Through the reports that are generated by bookkeeping \u2013 the recording of your company\u2019s financial transactions \u2013 to paint a picture of profit or loss.<\/p>\n
Knowing how to use these accounting recordings are powerful tools for you as the manager. It makes sense to know where your operating costs are going. Your Balance Sheet Liability Accounts give you a high-level view of the payments going out. You should be reviewing this report every month.<\/p>\n
The revenue section of the Income Statement shows the overview of all sales. You can set up job costing to track Costs of Goods Sold \u2013 in a service business it is the labor, payroll taxes, and employee benefits applied to revenue. You will then learn if your jobs are profitable.<\/p>\n
You can dig even deeper into your company\u2019s profitability through the accounting reports. Are there areas for improved operation procedures? Looking through the financial statements will give you an edge as a manager.<\/p>\n
Constant improvements will keep your competitive edge sharp. Knowing what to improve comes from learning all you can about your company\u2019s profitability. <\/p>\n
You do this through being able to read and use the information contained in the financial statements. Learn to use these powerful management tools as soon as possible. <\/p>\n
We would love to hear from you about your biggest accounting challenges facing your company<\/a>. Use the form on the link or leave a comment below and let us know what the challenge is.<\/p>\nHere\u2019s to your success as a small business owner and manager.<\/h4>\n