October 29, 2013

3 Financial Reports to Pull Before the Holiday Shopping Seasons Heats Up

Want to gain a better understanding of your business before the “big dance” of the holidays? Knowing where you stand and what your money situation really is can help you design a better campaign to bring in the most money you can during Black Friday, Cyber Monday and the rest of the holiday season. But which reports will be the most helpful?

There are 3 reports you can pull from the “Reports” tab at GoDaddy Online Bookkeeping that will give you the best idea of how your business is really doing. Let’s take a look at what they can do for you.

1. Profits & Loss

As we operate our businesses through the year, we have an idea how well we’re doing. You sell an item and you’re making money; you have a big expense and you’re in debt. It’s that simple, right?

Unfortunately, not really. Both profits and losses can add up quicker than we think, and it’s sometimes tough to really keep track of where you stand. This is especially true when things get really busy.

A Profits & Loss report can reveal the truth behind your company’s money. How much do you really make throughout the rest of the year? Are you actually losing money with your venture and not realizing it? Raw numbers don’t lie.

2. Expense Report

You want to make the most money you can during the holidays. It’s only natural – the winter season is notoriously busy and filled with people who need presents for this family member or that friend. It’s a great time for business owners as they typically make enough money to boost them through the beginnings of the next year.

So making the most money during this time of the year includes “trimming the fat.” Your expenses can drag you and your bottom line down. It’s especially frustrating if you’re paying for a bunch of stuff you don’t actually need or could be paying less for.

Try to find some of your biggest offenders on your Expense report and figure out how to cut them down. For example, when is the last time you negotiated for a better Internet package? Could you get a better gas rate for your home (and home office) if you went with a fixed rate rather than variable? All these little things add up quickly.

3. Best Sales Period

What can looking at the past tell you about the future? Undoubtedly at some point during the past year your business was practically on fire – you could do no wrong and product was flying out the window. It could’ve been a good week, month, or even a few months. No matter the time period, though, you can figure out what to do during the holidays.

Try going back over your “hot period” and try to figure out what caused it. Was it the unveiling of a new product? Then that product might also do well during the holidays as gifts. Was it from a great marketing campaign you dreamed up? How could you recreate that when the weather turns cold and people need last minute gifts?

While the streak you went through may not be 100% repeatable, you should be able to isolate a few aspects that can give you an advantage during the crazy holiday sales period.

Login to GoDaddy Online Bookkeeping today, or set up a free account, and check out your “Reports” tab. Knowing where you stand will help you launch your business to new heights this 4th quarter.

1 comment:

Venita Arguelles said...

Yeah. And what a trifecta, heh. The things finances projects really come down to aside from the final product. We need to determine the return on investment, as well as the financial situation for the next project. Which is where good and solid bookkeeping comes into play again.

Venita @ A Reliable Bookkeeping Services