The Dr. is In: Moneyball!
Don’t Forget the Balance Sheet
While many ESCs only focus on the P&L, the balance sheet is just as important. If shows you what you own (assets), and what you owe (liabilities). Review each number on the balance sheet to understand where it came from, and the implications of changes. Good cash flow is a function of a healthy balance sheet, where you are owed more money than you owe.
These are just a few of the numbers you need to review, understand and monitor. Find a good bookkeeper, CPA, qualified consultant or mentor to help you better understand the numbers in your company.
They may seem too confusing at first, but if you ask a lot of questions, commit to a process of a monthly review and discuss the impact of changes, it will start to make sense—I promise! Then you can use these numbers to build a winning team and a profitable company. CR
Leslie Shiner is a financial and management consultant. She is the owner of The ShinerGroup (www.shinergroup.com), a consulting firm helping businesses maximize profits and gain financial control.
She is the author of A Simple Guide to Turning a Profit as a Contractor, available at www.MoneyMazeBooks.com.
Leslie recently received the Overall CEDIA Top 10 Instructor Award. She can be reached at L_Shiner@ShinerGroup.com.
Opposite below is a list of the classes, dates and times Leslie Shiner is teaching at CEDIA EXPO 2012.