Our observations can be limited by our experience.
For example, recently an architect gave me suggestions for elements to include in a new website that I will launch soon for. His design-eye expertise is invaluable to me. I told him, “You can see things that my eyes do not. I look, but do not see the same detail as you do.” His reply was priceless, “Of course honey this is why we help each other – you see numbers I can’t see LOL.”
Numbers tell a story – in our financial statements and on our tax returns. I look for opportunities to make a difference in the story and so can you.
As we approach the end of the year, now is a great time to review the “Big Picture”.
You are the Chief Financial Officer of your home or for your business. You are in the driver’s seat.
Step away from thinking about “working in your business” and focus upon “working on your business”. Think about what you could do to make improvements. Focus upon strategy. Not compliance.
Compliance is filing a tax return. It is what we have to do to comply.
Strategy is about making a difference before you file the return or issue the next financial statements.
Here are 3 ways you can make a difference in your financial story:
- Review your financial performance:
- Are you allocating your budget resources (time and money) for the best use?
- Compare budget to actual results
- Compare year-to- year results; identify what changed. Why?
- Use financial ratio’s to uncover patterns:
- Are there areas or activities that are underperforming?
- Do certain activities provide little value or return on your investment?
- Can you change your mix to provide more value for you?
- Generate new insights:
- Can you find new opportunities?
- Can you make changes that would reduce your risk?
- Could some help from a different perspective find value for you?
Henry David Thoreau said, “It is not what you look at that matter’s, it’s what you see.”
What I could see, changed, after I reviewed the architect’s suggestions for my website. Likewise, his perspective changed, too, after I helped him.
We all have gifts we can use to make a difference for each other.
I hope this blog post might have made a small difference for you.
Thanks for reading.
To your success,
Deborah Ann Fox, CPA helps Small Business Owners & Individuals build and protect their financial wealth. She can help by being your financial compass while you captain your ship.
Debbie offers free 30 minute no obligation consultations. We can discuss/resolve via a mix of e-mail, phone, virtual, and in-person communications.
E-Mail me @ email@example.com
Facebook: Deborah Ann Fox, CPA