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How Current Do Your Financials Need to Be for Effective Decision-Making?

July 16, 20243 min read

How Current Do Your Financials Need to Be for Effective Decision-Making?

Dark skies with a small patch of blue amidst the storm. Sail boat in the ocean aiming for the blue sky.

Navigating the business world can be like sailing in stormy seas, and having the freshest financial data is your best compass. It's not just about keeping neat records; it's about keeping your finger on the pulse of your business's financial health so you can make sharp, strategic moves. Let’s break down just how fresh your financials need to be to really make a difference.

Real-Time Data: Making Decisions on the Fly

When it comes to daily operations—like managing your inventory or sorting out cash flow issues—having real-time financial data is a game changer. This means knowing your sales, expenses, and cash reserves as they happen. It’s all about KNOWING, so you can pivot quickly and avoid problems like running out of inventory or cash bottlenecks.

Weekly Check-Ins: Keeping Short-Term Goals on Track

Updating your financials weekly is super helpful for staying on top of your budgets and forecasts. This is especially crucial for keeping an eye on project expenses, managing payroll, and checking out how your sales are doing week by week. Regular weekly updates help you make sure you’re not spending too much too fast, and let you tweak your plans on the go to keep everything running smoothly. When you are working with a bookkeeper, if having accurate numbers on a weekly basis is crucial to your operations, make sure you are clear on that, as most bookkeepers will perform their services on a monthly basis.

Monthly Reviews: Steering the Ship

For the big decisions—like expanding your operations, kicking off a new marketing campaign, or gearing up for seasonal changes—monthly financial reports are your best friend. These should give you a full picture of where your business stands financially, with all the details like profits, losses, and cash flow. Monthly insights are perfect for thoughtful decision-making, helping you check if you’re on track with your bigger financial goals.

The Cool Stuff Up-to-Date Financials Do for You

Better Decision Quality: Spot-on decisions start with spot-on data. Using outdated or wrong info can lead to some pretty expensive oops moments. On the flip side, having the latest data means you can trust your business decisions to be the right ones.

Stay Ahead of the Game: In a fast-moving market, being quick on your feet can mean the difference between snagging an opportunity or missing out. Current financials keep you proactive, not just reactive, letting you adapt swiftly to whatever the market throws your way.

Win Over Investors and Partners: When your financials are up to date, it shows investors, lenders, and partners that you’re on top of things and your business is a good bet. This transparency builds trust and can make it easier to attract new funding.

Keep Risks in Check: Regular financial updates help you spot trouble early—like a drop in sales, rising costs, or billing issues. Catching these early means you can handle them before they turn into bigger problems.

 

How often you should update your financials really depends on what decisions you’re making and how big your operation is. While real-time data is essential for the day-to-day, don't overlook the value of weekly or monthly check-ins for those larger strategic moves. Keeping your financial reports as fresh as possible isn’t just about good bookkeeping—it’s about empowering your business to make decisions that are smart, strategic, and totally growth-oriented.

BookkeepingCurrent finance reportsfinancial reportsbookkeeper
Well hello there.

I see I have piqued your interest enough to make you say who the heck is that Mandy lady…I have been an entrepreneur for just about as long as I have been an adult.

I spent much of my time working in the accounting and tax industry and gained a wealth of knowledge and skills that have helped me truly manage the financial aspects of business and life. I get entrepreneur finance because I am an entrepreneur. I understand that a bad month in business usually means a bad month in personal finance also.

Our income fluctuates, it is never guaranteed, and we hustle every damn day to earn our money. Which makes any sort of financial goal a little more difficult. I have been an entrepreneur with a wildly successful business but I was broke.

I have been an entrepreneur who didn’t know how I was going to feed my kids at the end of the day, standing in line at the grocery store, praying the electric bill hadn’t cleared yet so I could buy groceries… because feeding my kids was more important than having lights on at night.

I am an entrepreneur who knows the importance of budgeting and planning and saving and doing it all in a way that doesn’t make me want to run and hide or make me feel like I CAN’T do the things I want to. I geek out with spreadsheets and finance and numbers and money.

I love sharing my geekiness in a way that allows you to ‘get it’ and how it will work for you. It isn’t one size fits all when you are an entrepreneur, so helping you find the way that works for you is my goal. So now that you know more about me, reach out and say hi!

Mandy McGowan

Well hello there. I see I have piqued your interest enough to make you say who the heck is that Mandy lady…I have been an entrepreneur for just about as long as I have been an adult. I spent much of my time working in the accounting and tax industry and gained a wealth of knowledge and skills that have helped me truly manage the financial aspects of business and life. I get entrepreneur finance because I am an entrepreneur. I understand that a bad month in business usually means a bad month in personal finance also. Our income fluctuates, it is never guaranteed, and we hustle every damn day to earn our money. Which makes any sort of financial goal a little more difficult. I have been an entrepreneur with a wildly successful business but I was broke. I have been an entrepreneur who didn’t know how I was going to feed my kids at the end of the day, standing in line at the grocery store, praying the electric bill hadn’t cleared yet so I could buy groceries… because feeding my kids was more important than having lights on at night. I am an entrepreneur who knows the importance of budgeting and planning and saving and doing it all in a way that doesn’t make me want to run and hide or make me feel like I CAN’T do the things I want to. I geek out with spreadsheets and finance and numbers and money. I love sharing my geekiness in a way that allows you to ‘get it’ and how it will work for you. It isn’t one size fits all when you are an entrepreneur, so helping you find the way that works for you is my goal. So now that you know more about me, reach out and say hi!

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