Small businesses need to have a good working knowledge of their financial information to make better business decisions. Here's how to use your business financials to improve your business operations from accounts payable to financial KPI's and marketing.

As a small business owner, you need to have a good understanding of your financial information to make sound business decisions. This includes knowing your accounts payable, financial KPI's and how marketing affects your bottom line. In this blog post, we will discuss three ways that you can use your business financials to improve your operations and make more money!

Accounts Payable:

One of the first places to look when you're trying to improve your business operations is your accounts payable. This is the money that you owe to suppliers and vendors for goods and services that you have purchased. By keeping a close eye on your accounts payable, you can make sure that you are not overspending on inventory or other expenses.

Financial KPI's:

Another important area to focus on when you're trying to improve your business operations is your financial KPI's. These are the key indicators that will show you how well your business is doing financially. Some of the most important KPI's for small businesses include gross margin, operating margin, and net profit margin. By tracking these KPI's, you can identify areas where your business is doing well and areas where you need to make improvements.

Marketing:

Finally, another important aspect of your business financials is marketing. Marketing expenses can add up quickly, so it's important to track how much you're spending on marketing and whether it's generating any new business. If you find that your marketing expenses are high but you're not seeing any new customers, then it's time to reevaluate your marketing strategy.

By keeping a close eye on your accounts payable, financial KPI's, and marketing expenses, you can use your business financials to improve your operations and make more money. So, what are you waiting for? Get started today! Need Help? No problem. Financial Review is one of the services that EVO provides businesses of all sizes as a single financial review, or a monthly ongoing package to help keep your business financials on track. Give us a call today or drop us a line and we’ll get you taken care of.